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Full text of "North Carolina Register v.5 no. 8 (7/16/1990)"

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^FGFJVTD 



JUL 17 



1990 



The 



^W UBRAf?y 



NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



EXECUTIVE ORDERS 



^^^' 



^/STRN^ 



PROPOSED RULES 

Environment, Health, and 
Natural Resources 

Human Resources 

Insurance 

FINAL RULES 

List of Rules Codified 

ARRC OBJECTIONS 

RULES INVALIDATED BY 
JUDICIAL DECISION 

ISSUE DATE: JULY 16, 1990 
Volume 5 • Issue 8 • Pages 514-603 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
uill typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North Carolina 
Register is available by yearly subscription at a cost of 
one hundred and five dollars (S105.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 1 1666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agenc>' intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of an> amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrati\e Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Registerheiore the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrati\e Rules Review Commission. Upon ap- 
pro\al of ARRC, the adopted or amended rule must be 
filed with the Office of Administrati\e Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted \ersion will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrati\e Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary 

rule becomes effecti\e \*.hen adopted and remains in 



effect for the period specified in the rule or 180 days, 
whiche\er is less. An agency adopting a temporarv' rule 
must begin normal rule-making procedures on the per- 
manent rule at the same time the temporary rule is 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrati\e Code (NCAC) is 
a compilation and index of the administrative rules oi 
25 state agencies and 38 occupational licensing boards 
The NCAC comprises approximately 15,000 letter size 
single spaced pages of material of which approximate 
Iv 35 ''o is changed annually. Compilation and publica 
t'ion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Eacf 
state agenc>' is assigned a separate title which is fur 
ther broken down by chapters. Title 21 is designatec 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimun 
cost of two dollars and 50 cents (S2.50) for 1( 
pages or less, plus fifteen cents ($0. 15) per eacl 
additional page. 

(2) The full publication consists of 52 volume 
totaling in excess of 15,000 pages. It is sup 
plemented monthly with replacement pages, i 
one year subscription to the full publication in 
eluding supplements can be purchased fo 
seven hundred and fifty dollars (S750.00). Ir 
di\idual \olumes may also be purchased wit 
supplement ser\'ice. Renewal subscriptions fo 
supplements to the initial publication availabL 

Requests for pages of rules or \'olumes of the NCA( 
should be directed to the Office of Administrativ 
Hearings. 

NOTE 

The foregoing is a generalized statement ot the pre 
cedures to be followed. For specific statutory' language 
it is suggested that Articles 2 and 5 of Chapter 150B c 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited h\ \olume, issu< 
page number and date. 1:1 NCR 101-201, April 1, 198 
refers to Volume 1, Issue 1, pages 101 through 201 c 
the North Carolina Register issued on April 1, 1986 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. Drawer 
11666, Raleigh, North Carolina 27604, pursuant to 
Chapter 150B of the General Statutes. Subscriptions 
one hundred and five dollars (SI 05.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes. 
Subscriptions seven hundred and fifty dollars 
(S750.00). Individual volumes available. 



NORTH 
CAROLINA 
REGISTER 



ISSUE CONTENTS 




OJfice of Administrative Hearings 

P. O. Dmner H666 

Ralcis;h, AC 27604 

(919) 733- 2678 



I. EXECUTIVE ORDERS 

Executive Orders 118-119 514 



II. PROPOSED RULES 

Environment, Health, and 
Natural Resources 

Environmental Management. ...542 

Health Services 565 

W 11' Operators Certification 

Commission 551 

Wildlife Resources and 

Water Safety 563 

Human Resources 

Facility Services 516 

Insurance 

Agent Services 520 

liiiancial H\aluation 525 

Life: Accident and Health 529 

III. EFSAL RULES 

List of Rules Codified 587 



.lulian Mann 111, 

Director 
James R. Scarcella Sr., 

Deputy Director 
Molly Masich, 

Director A PA Services 



rV. ARRC OBJECnONS 



597 



\ . RULES IN\ ALIDA i ED BY 

JUDICIAL DECISION 599 



Staff: 

Ruby Creech, 

Puhlications Coordinator 
Teresa Kiipatrick, 

Editorial .Assistant 
.lean Shirley, 

Editorial . \ssislanl 



VL CUMULATIVE INDEX 



.6ni 



NORTH CAROLINA RKGISTER 

Publication Schedule 

(April 1990 - December 1991) 



Issue 


I ast Day 


Last Day 


Farliest 


+ 


Date 


for 


for 


Date for 


Farliest 




Filing 


Electronic 


Public 


Fffective 






Filing 


Hearing & 
y\iJoption by 
Agency 


Date 


++++♦+++ 


*+*+*+++ 


+++++♦++ 


++++++++ 


+ * + + + + + i 


04/02/90 


03/12/90 


03/19/90 


05/02/90 


08/01/90 


04' 16/90 


03/23/90 


03/30/90 


05/16/90 


08/01/90 


05/01/90 


04,09,90 


04/17/90 


05,31/90 


09 01/90 


05/15,90 


04/24,90 


05/01/90 


06,14/90 


09/01/90 


06 01/90 


05/10/90 


05,' 17/90 


07/01/90 


10/01,90 


06/15 90 


05/24/90 


06 01/90 


07/15/90 


10/01/90 


07/02/90 


06/11/90 


06/18/90 


08,01/90 


11/01/90 


07' 16/90 


06/22/90 


06 '29/90 


08/15/90 


11/01/90 


08;01;90 


07/ 1 1 90 


07/18,90 


08,31/90 


12 01, ,90 


08, 1 5 90 


07 25/90 


08/01/90 


09/14/90 


12/01/90 


09/04:90 


08/13,90 


08/20/90 


10,04/90 


01/01/91 


09 14 90 


08/24/90 


08/31/90 


10/14/90 


01/01,91 


10 01 90 


09 10 90 


09 17,90 


10/31/90 


02 01 91 


10 15 90 


09, 25/90 


1002/90 


11/14/90 


0201/91 


11/01 90 


10/11 90 


10' 18 90 


11 30 90 


03 01,91 


11/15,90 


10/2490 


10 3L90 


12 14 90 


03 01,91 


12/03,90 


11/08/90 


n/ 15/90 


01/02/91 


04/01/91 


12/14/90 


11/2190 


11/30/90 


01/13,'91 


04/01/91 


01/02/91 


12,07, 90 


12'14/90 


02/01/91 


05/01/91 


01/15 91 


12/20 90 


12 31 '90 


02/14/91 


05/01,91 


02,01,91 


01, 10,91 


01' 17/91 


03,03/91 


06/01,91 


02/15/91 


01/25/91 


02/01/91 


03/17/91 


06/01/91 


03/01/91 


02/08/91 


02/15/91 


03/31/91 


07/01/91 


03/15/91 


02/22/91 


03 '01/91 


04/14/91 


07/01/91 


04/01 91 


03/11 91 


03/18/91 


05/01/91 


08/01,91 


04/15,91 


03/22/91 


04/01/91 


05' 15/91 


08/01/91 


0501/91 


04/10/91 


04/17/91 


05,31/91 


09 01/91 


05/15,91 


04/24,91 


05/01/91 


06/14/91 


09 01,91 


06/03/91 


05/10/91 


05/17/91 


07,03/91 


1001/91 


06/ 14 '91 


05/23,91 


05/31/91 


07/14/91 


10 01/91 


07/01/91 


06/10 91 


06/17/91 


07,31/91 


11 01/91 


07/15/91 


06/21/91 


06/28/91 


08/14/91 


11/01/91 


08/01,91 


07/11/91 


07/18/91 


08/31/91 


12'01/91 


08/15/91 


07/25,91 


08/01/91 


09/14/91 


1201/91 


09/03/91 


08/12,91 


08/19/91 


10 03/91 


01/01/92 


09/ 16 '91 


08/23/91 


08/30/91 


10 16,'91 


01/01/92 


10/01/91 


09 10 91 


09/17/91 


10 31 91 


02 1 92 


10/15,91 


09,24,91 


10 01,91 


11/14/91 


02,01,92 


11/01/91 


10/11/91 


10/18/91 


12 '01/91 


03 '01/92 


11/15/91 


10/2491 


10/31/91 


1215/91 


03/01/92 


12/02/91 


11/07,91 


11 '14,91 


10 1/92 


04 '01/ 92 


1216,91 


11 21 'M 


12 02 91 


01 15/92 


04 01 92 



* The " F.arlicst Effective Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date" . that the agency files the rule with The Administrative Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the rule at the mwl calendar month meeting. 



EXECUTIVE ORDERS 



EXECLTIVK ORDER NUMBER 1 18 

EXTENDING EXECLTIVE ORDER NUMBER 79 

NORTH CAROLINA SMALL BUSINESS 

COUNCIL 

\V HI, RE AS, small business is a major contribu- 
tor to the economic health of North Carolina; 
and 

WHEREAS, it has made to appear to me that 
the North Carolina Small Business Council 
should continue; 

THEREEORE, by the authority vested in me as 
Governor by the Constitution and laws of this 
State, IT IS ORDERED: 

Executive Order Number 79, amended by 
Executive Order Number 84, is hereby extended 
and shall remain in effect until June 30, 1992, 
unless terminated earlier or extended by further 
Executive Order. 

Done in the Capital City of Raleigh, North 
Carohna, this 12th day of June, 1990. 

EXECUTIVE ORDER NUMBER 1 19 

ESTABLISHING THE NORTH CAROLINA 

QUALITY LEADERSHIP AWARDS COUNCIL 

By the authority vested in me as Governor by 
the Constitution and laws of North Carolina, IT 
IS ORDERED: 

Section 1. Establishment. The North Carolina 
Quality Leadership .Awards Council is hereby 
established. The Council shall have the follow- 
ing subordinate committees: 

A. the Examination Board; 

B. the Recognition Committee; and 

C. such other committees as the Council shall 

create. 

Section 2. Membership. The Council shall 
consist of not more than twenty (20) members, 
including: 

A. the Secretary of Economic and Commu- 
nity Development; 

B. the President of the University of North 
Carolina System; 

C. the President of the Community College 
System; 

D. the Science Advisor to the Go\emor; 

E. a member recommended by the Lieutenant 

Ciovemor; 

E. a member recommended by the Speaker 
of the House; 

G. the President of North Carolina Citizens 
for Business and Industry; 

IE the President of the North Carolina Qual- 
ity Leadership (NCQL) Eoundation; and 



I. no more than twelve (12) ranking officials 
of Award recipient organizations, serving 
three year terms starting in the year sub- 
sequent to winning the Award. 

Section 3. Chairmanship, Terms, and Vacan- 
cies. The Governor shall serve as Honorary 
Chairman. The North Carolina Quality Leader- 
ship Eoundation wiU provide the Secretariat. 
All members under subsections (e), (f), and (i) 
above shall serve at the pleasure of the Governor. 
The Governor shall fdl all vacancies and, if a va- 
cancy occurs in a seat held by a member recom- 
mended by the Lieutenant Go\emor or the 
Speaker of the House, the Governor shall fill that 
vacancy after recommendation by the 'appropri- 
ate otTicial. 

Section 4. Purposes. The purposes of the 
Council shall be: 

A. to enhance education and training of 
management and workforce, both current 
and future; 

B. to improve competitiveness of North 
Carolina business and industr>', especially 
supplier relationships; 

C. to encourage e;'cchangc of information to- 
ward quality improvement, especially 
through regional councils and industry 
associations; and 

D. to promote application of total quality 
management in North Carolina organiza- 
tions. 



Duties of ("ouncil, Board, and 



Section 5. 

Committees. 

A. The North Carolina Quality I eadership 
Awards Council shall ha\e the following respon- 
sibilities: 

1. appro\e and announce Achievement Award 

and Honor RoU recipients in the catego- 
ries of manufactunng and service indus- 
tries, both large and small; 

2. approve guidelines to examine applicant 
organizations; 

3. approve appointments of judges and ex- 
aminers; 

4. arrange appropriate annual awards and re- 

cognition for recipients; 

5. formulate recommendations for change in 

the form or coverage of awards, in coop- 
eration with the North Carolina Quality 
Leadership Eoundation; and 

6. review related education, training, technol- 

ogy transfer, and research initiatives pro- 
posed by the North Carolina Quality 
Leadership Eoundation. 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



514 



EXECUTIVE ORDERS 



B. The Council shall form an I'xamination 
Board and a RecoCTiition (-ommittee. It may 
form such other committees as necessary to 
evaluate and recogni/e quality leadership by 
North CaroUna organizations. 

C. The members of an Fxamination Board 
shall be drawn from professional and technical 
experts in total quality management and quality 
assurance related fields. .Members shall be in- 
\ited to ser\e by the Council and shall serve at 
its pleasure. 

D. The members of the Recognition Commit- 
tee shall be drawn from business, industry, edu- 
cation and government personnel concerned with 
award programs and public relations, especially 
representing industry associations and regional 
councils concerned uith quality and productivity 
improvement. Members shall be invited to serve 
by the Council and shall ser\'e at its pleasure. 

E. The Fxamination Board shall: 

1. conduct evaluation of applicant organiza- 
tions by: 

(a) selecting and nommating Examiners and 
Judges; and 

(b) assessing applications, providing feed- 
back, and conducting site \isits of partic- 
ipating organizations; 



2. recommend Award guidelines; and 

3. nominate Award recipients. 

F. The Recognition Committee shall be re- 
sponsible to: 

1 . recommend the nature and types of phys- 

ical awards; and 

2. recommend the format and timing of cere- 

monies. 

.Section 6. Administrati\e Support. Operations 
support for the Council and Examination Board, 
including administrative and training activities, 
shall be provided by the NCQE Foundation 
staff. The Department of Economic ajid Com- 
munity Development, the University ,of North 
Carolina System, and or the Community College 
System shall provide additional staff and admin- 
istrati\e support on a \oluntan. basis. 

Section 7. This Order shall become effective 
immediately and shall expire on June 30, 1993, 
unless extended or terminated by further Execu- 
tive Order. 

Done in Raleigli, North Carolina, this the 18th 
day of June, 1990. 



515 



.v,V SORTH CAROLISA REGISTER Jiilv 16,1990 



PROPOSED RULES 



TITLE 10 - DEPARTMENT OE HUMAN 
RESOURCES 

l\ otice is hereby given in accordance with G.S. 
I SOB- 1 2 that the Certificate of Meed Section. Di- 
vision of Facility Services, Department of Human 
Resources intends to adopt, amend, repeal rule(s) 
cited as 10 NCAC 3R .0305, .2101 - .2109. and 
.2113 - .2119. 

1 he proposed effective date of this action is No- 
vember I, 1990. 

1 he public hearing will be conducted at 1:00 
p.m. on August 15. 1990 at Room 201, 701 
Barbour Drive, Raleigh, ;V. C. 27603. 



Co 



omment Procedures: Written comments con- 
cerning the rules should be submitted as soon as 
possible but no later than August 15, 1990 to 
Lynda McDaniel at 701 Barbour Dri\e. Raleigh. 
N. C. 27603. Oral comments may be presented 
at the hearing. 

CHAPTER 3 - FACILITY SERMCES 

SUBCHAPTER 3R - CERTIFICATE OF NEED 
REGULATIONS 

SECTION .0300 - APPLICATION AND REVIEW 
PROCESS 

.0305 FILING APPLICATIONS 

(a) An application will not be reviewed by the 
agency until it is filed in accordance with tliis 
Rule. 

(b) .Aji original and a copy of the application 
shall be received by the agency no later than 5:00 
p.m. on the last working day prior to 15 davs 
before the first day of the scheduled re\iew pe- 
riod. An apphcation will not be included in a 
scheduled review if it is not received by the 
agency by tliis deadline. Each applicant shall 
transmit, with the application, a fee to be deter- 
mined according to the following formula: 

(1) With each application proposing no capi- 
tal expenditure or the addition of a sixth 
bed to an existing or approved five bed 
intermediate care facihtv for the mentally 
retarded, the proponent shall transmit a 
fee in the amount of four hundred dollars 
($400.00). 

(2) With each application, other than those 
referenced in (Jj of this Rule, proposing 
a capital expenditure of up to, but not in- 
cluding, five hundred thousand dollars 
($500,000), the proponent shall transmit 
a fee in the amount of frve hundred dollar; . 



($500.00) one thousand dollars 
($1.000.00). 
(3) With each application, other than those 
referenced in Qj of this Rule, proposing 
a capital expenditure of five hundred 
thousand dollars ($500,000) or greater, the 
proponent shall transmit a fee in the 
amount of five hundred dollars ($500.00), 
one thousand dollars ($1,000.00), plus an 
additional fee equal to .0015 .002 of the 
amount of the proposed capital expendi- 
ture in excess of five hundred thousand 
dollars ($500,000). The additional fee 
shall be rounded to the nearest whole 
dollar. In no case shall the total fee ex- 
ceed fifteen thousand dollars ($15,000). 

(c) After an application is filed, the agency shall 
determine whether it is complete for review. ^-Vn 
application shall be complete unless: 

(1) the requisite fee has not been received by 
the agency; or 

(2) a signed original and copy of the applica- 
tion ha\e not been submitted to the 
agency on the appropriate application 
form. 

(d) If the agency determines the apphcation is 
not complete for review, it shall mail notice of 
such determination to the applicant within five 
business days after the apphcation is filed and 
shall specify what is necessary to complete the 
application. If the agency determines the apph- 
cation is complete, it shall mail notice of such 
determination to the applicant prior to the be- 
ginning of the apphcable review period. 

(e) Information requested by the agency to 
complete the apphcation must be recei\ed by the 
agency no later than 5:00 p.m. on the last work- 
ing day before the first day of the scheduled re- 
view period. The review of an application u iU 
commence in the next applicable review period 
that commences after the application has been 
determined to be complete. 

(f) If an apphcation is withdrawn by the apph- 
cant before the first day of the applicable review 
period, the application fee, if paid, will be re- 
funded to the appUcant. 

Slalulorv Authority G.S. I3IE-177; 13 IE- 1 82; 
S.L. I9S3, C. 713. 

SECTION .2100 - CRITERIA AND SIAND.VRDS 

FOR AMBt I.Ar()K\ SI R(;iCAL 

SKR\I( ES 

.2101 ENFORCEMENT B\ STA IK AGENCY 

(REPEALED) 
.2102 DEFINITIONS (REPEALED) 
.2103 SLBSTANTIAL EXPANSION OF 

SERVICES (REPEALED) 



5:8 NORTH CAROLIlSA REGISTER July 16, 1990 



516 



PROPOSED RULES 



.2104 CAPACITY IN THE FACILITY AND IN 

THK HEAI.TII SERMCE AREA 

(REPEALED) 
.2105 SCOPE OF SER\ ICES OFFERED 

(REPEAI ED) 
.2106 PROJECTED LTILIZATION (REPEALED) 
.2107 PROJECTED P.\TIENT ORIGIN 

(REPEALED) 
.2108 SITE AND EQLIPMENT (REPEALED) 
.2109 STAFFING (REPEALED) 

Statutory Authority G.S. I3IE-I77( I ). 

.2113 DEFINITIONS 

The following definitions will apply to all rules 
in this Section: 

(1) "Ambulator, surgical services" means 
those surgical services provided to patients 
as part of an ambulatory" surgical program 
within a licensed ambulator>' surgical facility 
or a general acute care hospital licensed un- 
der G.S. Chapter 131H, .\rticle 5, Part A. 

(2) ".Ambulator)' surgical facility" means a fa- 
cility licensed for the pro\ision of an 
ambulatory surgical program. .An 
ambulatory surgical facility sen,'es patients 
who require local, regional or general anes- 
thesia and a period of post-operati\'e obser- 
\ation. .An ambulatop.' surgical facihty may 
only admit patients for a period of less than 
24 hours and must provide at least one des- 
ignated operating room and at least one 
designated recosery room, have a\'ailable the 
necessary equipment and trained personnel 
to handle emergencies, provide adequate 
quality assurance and assessment by an 
e\aluation and review committee, and 
maintain adequate medical records for each 
patient. .An ambulatory surgical facility may 
be operated as part of a physician or den- 
tist's office, provided the facility is licensed 
under G.S. Chapter 13 IE, Article 6, Part D, 
but the pertbrmance of incidental, limited 
ambulatory surgical procedures which do 
not constitute an ambulator)' surgical pro- 
gram and which arc performed in a physi- 
cian s or dentist s office does not make that 
office an ambulatorv surgical facility. 

(3) ".Ambulator,' surgical program" means a 
formal program for pro\'iding on a same-day 
basis those ambulatory surgical procedures 
which require local, regional or general 
anesthesia and a period of post-operative 
observ'ation to patients in a licensed 
ambulator) surgical facility or in a general 
acute care hospital Ucensed under Ci.S. 
13 IH, .Article 5. Part .A whose admission for 
more than 24 hours is dctcmiiiicd. prior to 
surizcn . to be mcdicallv unnecessary . 



(4) "Ambulatory surgical procedure" means a 
surgical procedure performed in a surgical 
operating room which requires local, re- 
gional or general anesthesia and a period of 
post-operative observation of less than 24 
hours. Ambulatory surgical procedures ex- 
clude those procedures which are generally 
performed more than 50 percent of the time 
in a physician's office. 

(5) "/Ambulator)' surgical operating room" 
means a dedicated or shared operating room 
in a licensed ambulatory surgical facility or 
a general acute care hospital that is fuUy 
equipped to perform surgical procedures and 
is constructed to meet the specifications and 
standards appropriate to the type 'of facility 
as utilized by the Construction Section of 
the Division of Facility Services, including 
tire and life safety code requirements. 
.Ambulator)'" surgical operating rooms ex- 
clude operating rooms dedicated for the 
performance of inpatient surgical proce- 
dures, cast rooms, procedure rooms that do 
not meet operating room specifications, 
suture rooms, \'\G laser rooms, and 
c) stoscopy and endoscop)' procedure rooms 
that do not meet the specifications of an 
operating room. 

(6 1 "Existing ambulator)' surgical operating 
rooms" mean only the ambulatory surgical 
operating rooms in ambulator)' surgical fa- 
cilities and hospitals reported on the 1 icense 
.Application for .Ambulator)" Surgical f-'acili- 
ties and Programs and Part III of Hospital 
Licensure Renewal .Application Form sub- 
mitted to the Licensure Section of the Di\'i- 
sion of Facility Services and licensed and 
certified prior to the beginning of the review 
period. 

(7) ".Approved ambulatory surgical operating 
rooms" mean only the ambulatory surgical 
operating rooms that ha\'e been approved 
for a certificate of need h\ the Certificate of 
Need Section prior to date on which the 
applicant's proposed project was submitted 
to the .Agency but ha\e not been licensed 
and certified, and ambulator) surgical oper- 
ating rooms which the Certificate of Need 
Section determined were not subject to cer- 
tificate of need review and are under con- 
struction prior to the date the applicant's 
proposal was submitted to the .Agenc\ . 

(S) "Dedicated ambulators' surgical operating 
room" means an ambulator)' surgical oper- 
ating room used solely for the performance 
of ambulator)' surgical procedures. 

C^h "Shared surgical operating room" means 
an ambulator)' surgical operatmg room that 



5/7 



5:S SORTH CAROLISA REGISTER July 16,1990 



PROPOSED RULES 



is used for the performance of both 
ambulatory and inpatient surgical proce- 
dures. 

(10) "Speciality area" means an area of medical 
practice in which there is an approved med- 
ical speciality certificate issued by a member 
board of the American Board of Medical 
Specialities and includes, but is not limited 
to, the following; gynecology, 
otolaryngology, plastic surger>', general sur- 
gery, ophthalmology, urology, orthopedics, 
and oral surgery. 

(11) "Practical utilization" is 4.8 surgical pro- 
cedures per day for a dedicated ambulatory 
surgical operating room and 3.8 surgical 
procedures per day for a shared surgical op- 
erating room. 

(12) "Service area" means an area within ap- 
proximately 30 road miles of the ambulatory 
surgical facility. 

(13) "Rule area" means a geographic area that 
is not defined as an urbanized area by the 
Bureau of the Census. An urbanized area 
comprises an incorporated place and adja- 
cent densely settled surrounding area that 
together has a minimum population of at 
least 50,000. 

Statutory Authority G.S. I3IE-I77: l3IE-IS9(b). 

.21 14 INKORM.ATION REQLIRKD OF 
APPLICANT 

An applicant proposing to establish a new 
ambulator^' surgical facility or increase the num- 
ber of ambulator>' surgical operating rooms in an 
existing ambulatorv' surgical facility or hospital 
shall provide the following information regarding 
the services to be offered in the facility following 
completion of the project: 

(1) the number and type of dedicated 
ambulator/' surgical operating rooms, 

(2) the number and type of shared ambulatory 
surgical operating rooms, 

(3) the projected number of surgical proce- 
dures, identified by CFT code and 
ICD-9-CM procedure code, to be performed 
in the ambulatory surgical operating rooms, 

(4) the fixed and movable equipment to be lo- 
cated in each ambulator)' surgical operating 
room, 

(5) the hours of operation of the ambulatory 
surgical program, 

(6) the projected average charge for the 20 most 
common surgical procedures proposed to be 
performed in the ambulator)' surgical pro- 
gram and a list of all sen'iccs and items in- 
cluded in each charse, and 



(7) other information as required in the appli- 
cation. 

Statutory Authority G.S. I3IE-I77; l3IE-IS9(b). 

.21 15 NEED FOR SERVICES 

(a) An appUcant proposing to establish a new 
ambulatory surgical facility in a rural area shall 
demonstrate that the new facility will not have a 
significant negative financial impact on existing 
ambulatory surgical programs located in the rural 
area. 

(b) In projecting utilization for existing, ap- 
proved, and proposed ambulator) surgical pro- 
grams, a program shall not be considered to be 
open more than five days per week and' 50 weeks 
per year. 

(c) A proposal to establish a new ambulatory 
surgical facility or increase the number of 
ambulatory surgical operating rooms in an exist- 
ing ambulator)' surgical facihty or hospital shall 
not be approved unless the apphcant documents 
that the average number of ambulator)' surgical 
procedures per ambulator)' surgical operating 
room in the applicant's ambulatory surgical pro- 
gram are projected to be at practical utilization 
measured during the fourth quarter of the third 
year of operation following completion of the 
project. 

(d) An applicant shall document the need for 
a new ambulatory surgical facility or an increase 
in the number of ambulator)' surgical operating 
rooms by demonstrating that the number of ex- 
isting and approved ambulator)' surgical operat- 
ing rooms in the proposed service area is not 
sufficient to meet the projected need for 
ambulatory surgical services in the proposed ser- 
vice area; or, alternatively, that the proposed 
project is needed because it will result tn im- 
proved access to ambulator)' surgical services by 
the medically underserved residents of the pro- 
posed service area. To demonstrate that: 

(1) the number of existing and approved 
ambulatory surgical operating rooms in 
the proposed service area is not sufficient 
to meet the projected need for ambulator)' 
surgical services in the proposed service 
area the apphcant shall document: 

(A) each existing or approved ambulator)' 
surger)' program that pcrfomis 
ambulator) surger)' in the same speciality 
area is reasonably projected to be at prac- 
tical utilization pnor to the completion of 
the proposed project, and 

(B) all assumptions used in projecting the 
number of ambulator)' surgical procedures 
to be perfonned in the new or expanded 
ambulator)' surgical program and the need 



5:8 NORTH CAROLINA REGISTER July 16,1990 



51S 



PROPOSED RULES 



for the additional operating rooms in the 
proposed service area; 
(2) the proposed project is needed because it 
will result in improved access to 
ambulatory surgical services by the med- 
ically underserved residents of the pro- 
posed service area, the applicant shall 
provide the following: 

(A) documentation that the medically 
underserved do not have adequate access 
to ambulatory surgical services because 
each existing or approved ambulatory 
surgical program performing ambulatory 
surgical procedures in the same speciality 
area: 

(i) has charges that are at least 30 percent 
higher than the average statewide 
charges for similar ambulatory surgical 
procedures as shown by documented 
patient charges for existing facilities and 
the projected charges for approved fa- 
cilities and as shown by recognized 
sources of data on average statewide 
charges for ambulatory surgical proce- 
dures; or 

(ii) has admissions policies that arc re- 
strictive. 

(B) documentation that the proposed 
project will make ambulatory surgical 
ser\ices more accessible to the medically 
underserved population in the proposed 
service area by: 

(i) demonstrating that the facility or pro- 
gram win charge significantly less for 
similar ambulatory surgical procedures 
than is charged by each existing or ap- 
proved ambulatory' surgical program, if 
existence of high charges has been doc- 
umented in accordance with this Rule, 
and 

(ii) demonstrating that the facility or 
program will establish a significantly 
less restrictive admissions policy for 
ambulatory surgical services than used 
b\ each existing or approved 
ambulatory surgical program, including 
assurance that uninsured persons, 
underinsured persons, and Medicaid re- 
cipients will be better ser\ed, if the ex- 
istence of restricti\e admissions policies 
is documented in accordance with this 
Rule. 

(C) documentation of all assumptions used 
in detcnnining that current access to the 
medically underserved is restricted and 
that projected access will be improved and 
all assumptions used in projecting the 



number of ambulatory surgical procedures 
to be performed and the number of new 
ambulatory surgical operating rooms to 
be established. 

Statutory Authority G.S. I3IE-I77; I3IE-I89(b), 

.2116 FACILITY 

(a) A Ucensed ambulatory surgical facility 
physically located within a physician's or den- 
tist's office or within a general acute care hospital 
shall be a separately identifiable entity that is 
physically, administratively, and financially inde- 
pendent and distinct from other operations of the 
facility in which it is located. 

(b) An applicant proposing a facility shall re- 
ceive accreditation from the Joint Commission 
for the Accreditation of Healthcare Organiza- 
tions, the Accreditation Association for 
Ambulatory Health Care or a comparable ac- 
creditation authority within one year of com- 
pletion of the facility. 

(c) An applicant proposing to establish a new 
ambulatory surgical facility or increase the num- 
ber of ambulatory surgical operating rooms in an 
existing ambulatory surgical facility or hospital 
shall document that the physical environment of 
the facility conforms lo the requirements of fed- 
eral, state, and local regulatory' bodies. 

(d) In competitive reviews, an applicant pro- 
posing to perform ambulatory surgical proce- 
dures in at least three speciality areas will be 
considered more favorably than an applicant 
profHjsing to perform ambulatory- surgical proce- 
dures in fewer than three speciality areas. 

(e) The applicant shall provide a floor plan of 
the proposed facility clearly identifying the fol- 
lowing areas: 

(1) receiving/registering area, 

(2) waiting area, 

(3) pre-operative area, 

(4) operating rooms by type, 

(5) recovery area, and 

(6) observation area. 

Statutoiy Authority G.S. l3ll-:-l77: l3IE-IS9(b). 

.2117 ACCKSSIBILITY TO SKKVICES 

(a) An applicant proposing to establish a new 
ambulatory surgical facility or increase the num- 
ber of ambulatory' surgical operating rooms in an 
existing ambulatory surgical facility or hospital 
shall provide assurance that the facility, unless 
designated as a birtliing center, will be certified 
for .Medicaid and .Medicare reimbursement upon 
completion of the project. 

(b) The applicant shall provide documentation 
describing the mechanism that will be used to 



519 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



insure that the projected number of medically 
under5er\ed will be served in the facility. 

(c) The applicant shall pro\'ide a copy of the 
written admissions policies identifying any pre- 
pa\ment or deposit requirements for the facility 
and clearly stating the admissions requirements 
for the following payor categories: 

( 1 ) private pay, 

(2) medicaid beneficiaries, 

(3) medicare beneficiaries, 

(4) uninsured indigent patients. 

(5) undcrinsured indigent patients, and 

(6) fully msured patients. 

(d) The applicant shall provide a written de- 
scription of the billing procedures, including the 
credit collection policies, that will be utilized by 
the facility. 

(e) The applicant shall document that the 
health care community in the service area, in- 
cluding the Departments of Social Ser\'ices and 
Health, ha\e been in\itcd to comment on the 
proposed project, particularly with regard to the 
facility's admissions policies for the medically 
underserv'ed. 

S!atu!or); Authority G.S. I5IE-I77: 13IE-IS9(b}. 

.2118 STAFFING 

(a) An applicant proposing to establish a new 
ambulatory' surgical facility or increase the num- 
ber of ambulator}' surgical operating rooms in an 
existing ambulatory surgical facility or hospital 
shall identify and justify the number of staff to 
be utilized in the following areas: 

(1) administration, 

(2) pre-opcrative care, 

(3) post-operative care. 
(4j operating room, and 
(5) other. 

(b) The applicant shall estimate the number of 
ph\ sicians expected to utilize the facility and the 
criteria to be used by the facility in extending 
surgical and anesthesia privileges to medical per- 
sonnel. 

(c) 1 he applicant shall pro\ide documentation 
that physicians granted privileges to practice in 
the facility will be active members in good 
standing at a general acute care hospital or will 
ha\'e written referral procedures with a hospital 
in the proposed service area. 

Statuioiy Authority G.S. I3IE-I77: l3IE-IS9(b). 

.2119 RFI.AIlONSmi' TO SIPPORT 
AND ANCH.I.AR> SKKMC KS 

(a) .\n applicant proposing to establish a new 
ambulator*' suracal facilitv or increase the num- 



ber of ambulator)' surgical operating rooms in an 
existing ambulatory' surgical facility or hospital 
shall provide written policies and procedures 
demonstrating that the facility will have patient 
referral, transfer, and foUowup procedures. 

(b) The apphcant shall provide documentation 
showing the proximity of the proposed facility to 
the following services: 



(1) 
(2) 
(3) 
(4) 



emergency services, 
support services, 
ancillary services, and 
public transportation. 



Statutory Authority G.S. I3IE-I77: /3/E-/S9ib). 

TITLE II DHPARIMKNI OF 
INSLR.ANCE 

lyotice is hereby gh'en in accordance with G.S. 
I SOB- 1 2 that the \.C. Department of In.surance 
intends to adopt nde(s) cited as II SCAC 6A 

.0801 - .OS II. 

1 he proposed effective date of this action is \o- 
y ember I. 1990. ' 



Th 



he public hearing will be conducted at 1:00 
p.m. on August 16, 1990 at 430 ,\. Salisbury 
Street. Dobbs Building, 3rd Floor Hearing Room, 
Raleiirh. .\.C. 27611.^ 



Co 



omment Procedures: Written comments mar 
be sent to George Brown, .l^ent Se/Tices Dhision, 
P.O. Box 263S7, Raleigh[ X.C. 2761 1. Oral 
presentations may be made at the public hearing. 
Anyone having questions should call George 
Brown at (919) 733-748'^. or Ellen Sprenkel\2t 
(919) 733-4700. 

CHAI'TKR 6 - AGENT SKRMCKS ni\ ISION 

SLBCHAPTER 6A - AGENT SER\ ICES 
DIMSION 

SECTION .0800 - CON FINl ING EOl CAIION 

.0801 DEFINITIONS 

As used in this Section: 

(1) "Course" means a continuing education 
course directly related to insurance principles 
and practices or a course designed and ap- 
proved specifically for licensees; but does not 
mean a business course of a general nature 
or an insurance marketing or sales course. 

(2) "Credit hour" means a value assigned to a 
course by the Conimissioner upon review 
and approval of course infoi"mation. 



5:8 NORTH CAROLINA REGISTER July 16, 19W 



520 



PROPOSED RULES 



(3) "Disinterested third party" means a person 
not concerned, with respect to possible gain 
or loss, in the result of a pending course final 
examination: and means a person of no bias 
who is impartial and not prejudiced in favor 
of or against a licensee sitting for an exam- 
ination. 

(4) "Distance learning" means an educational 
program in which the licensee and the in- 
structor are in different physical locations 
and interact with each other through various 
methods of telecommunication. 

(5) "Instructor" means an indi\idual who 
teaches, lectures, leads, or otherwise in- 
structs a course. 

(6) "Licensee" means a duly licensed agent or 
broker who is required to comply with this 
Section. 

(7) "Supervised examination" means a timed, 
closed book examination that is monitored 
by a disinterested third part and graded by a 
nationally recognized insurance education 
program. 

(8) "Supervised indi\idual study" means audio 
tapes, video tapes, computer programs, pro- 
grammed learning courses, and similar types 
of learning experiences that are completed in 
the presence of an appro\'ed instructor. 

Staiutory Auihoriiy G.S. 5S-33-I30. 

.0802 LICENSEE REQLIREMENTS 

(a) Life, accident, and health licensees shall 
obtain 12 credit hours during each calendar year 
in appro\ed life, accident, and health courses, 
including mandator,' statute and rule update. 

(b) Fire and casualty licensees shall obtain 12 
credit hours during each calendar year in ap- 
proved tire and casualty courses, including man- 
dator\' statute and rule update. 

(c) .Occident and health licensees shall obtain 
12 credit hours during each calendar year in ap- 
proved accident and health courses, including 
mandatory' statute and rules update. 

(d) s\n\ person holding more than one license 
to which this Section applies shall meet the re- 
quirements for each such license each calendar 
year. 

(e) .Vn instructor ma\' receive up to twice the 
credit hours recei\ed b_\' the students for some 
courses but may recei\'c no credit hours for oth- 
ers, in the discretion of the Commissioner. .An 
instructor shall teach at least SO percent of the 
scheduled course hours in order to receive any 
credit. 

(f) licensees shall not receive credit hours for 
instructing or taking or instructing and taking the 
same course more often than one tune in anv 



three calendar year period except when there are 
major revisions within the course. The Com- 
missioner shall determine whether the re\isions 
are substantial enough to allow licensees to re- 
take or reinstruct an approved course within a 
three calendar year period. 

(g) Licensees do not have to obtain credit 
hours for the calendar year in w hich they are in- 
itially licensed. 

(h) Licensees shall receive credit hours for a 
course only for the calendar year in which the 
course is completed. Any course requiring an 
examination shall not be considered completed 
until the licensee passes the examination. 

(i) Licensees shall not receive credit hours for 
courses completed prior to January 1. 1991. 

(j) Licensees shall maintain records of all credit 
hours for three years following the obtaining of 
such credit hours, which records shall be avail- 
able for inspection upon the Commissioner s re- 
quest. 

(k) Nonresident Licensees who meet continuing 
education requirements in their home states meet 
the contmuing education requirements of this 
Section. Nonresident licensees whose home 
states have no continuing education requirements 
shall meet the credit hour requirements of this 
Section. 

(1) Courses completed prior to the issue date 
of a new license do not meet the requirements 
of this Section for that new license. 

Staiulor}- Authority G.S. 5S-33-I30. 

.0803 COLRSES SPECIFIC.VLl.V .VPPRO\ ED 

(a) Courses that are necessar>" to obtain the 
following nationally recognized designations are 
approved as they exist on the effective date of this 
Section for 20 credit hours upon successful com- 
pletion of the national examination for each part; 

( 1 ) Accredited Ad\isor in Insurance (rVAI); 

(2) Associate in Claims (.AIC); 

(3) Associate in Loss Control Manaiiement 
(ALCM); 

(4) Associate in Risk Management (.\RM); 

(5) Associate in Underwriting (AU): 

(6 1 Certified Lmplovees Benefit Specialist 
(CEBS); 

(7) Chartered Financial Consultant (ChFC): 

(S) Chartered Life Lnderwnter (CLU); 

(9) Chartered Propert_\' and Casualty Lnder- 
wnter (CPCL): 

(10) Fellow Life .Manaeemcnt Institute 
(FLMI); 

(11) General Insurance (INS); 

(12) life L'nden\"riter Training Council Fel- 
low, 26 week (LLTCF). 



521 



5:8 NORTH C.4R0LL\A REGISTER Jiilv 16, 1990 



PROPOSED RULES 



(b) Courses that are necessary to obtain the 
following nationally recognized designations are 
approved as they exist on the effective date of this 
Section for an amount of credit hours to be de- 
termined by the Commissioner's evaluation 
process: 

(1) Agency Management Training Course 
Graduate; 

(2) Certified Insurance Counselor (CIC); 

(3) Certified Insurance Senice Representative 
(CISR); 

(4) Certified Professional Service Represen- 
tative (CPSR); 

(5) Fraternal Insurance Counselor (FIC); 

(6) Health Insurance Associate (HIA); 

(7) Lile Underwriter Training Council Fel- 
low, 13 weeks (LUTCF); 

(8) Registered Health Underwriter (RHU). 

(c) Courses that are taught by a coUege or 
university that is accredited by the Southern As- 
sociation of Colleges and Schools are approved 
as they exist on the effective date of this Section 
for a number of credit hours to be determined 
by the Commissioner's evaluation process. 

(d) The statute and rule update prepared by the 
Commissioner is approved as a mandatory com- 
ponent of each licensee's continuing education 
requirement for a number of credit hours to be 
determined annually by the Commissioner's 
evaluation process. 

Stanuoiy Authoritv G.S. 5S-33-I30. 



based upon the evaluation of the submit- 
ted course materials. Courses will only 
be approved for whole credit hours, 
(d) Course providers must properly monitor 
participants for attendance and attention. 

(2) Independent study programs: 

(a) Independent study programs qualify for 
continuing education only when there is 
a proctored examination administered by 
a disinterested third party, such as a test- 
ing center, and graded by the course pro- 
vider. No examination administered or 
graded by insurance company personnel 
for its own employees will be considered 
to be administered by a disinterested third 
party. 

(b) Only those courses that ha\e been ap- 
proved by the Commissioner in advance 
will be considered for credit hours. 

(c) Each course shall be assigned a particular 
credit hour or hours and such credit hour 
or hours will be awarded upon the suc- 
cessful passing of such proctored exam- 
ination. 

(3) Distance Learning Programs: 

(a) Distance learning qualifies only when an 
approved instructor is available to re- 
spond to questions and to maintain at- 
tendance records. 

(b) Any organization sponsoring a teleconfer- 
ence shall have a person approved to be 
an on-site instructor. 



.0804 C.\KRVOVER CREDIT 

(a) No more than 75 percent of the credit hours 
required shall be carried forward from the previ- 
ous year. Example: If 12 credit hours are re- 
quired, only nine credit hours may be carried 
o\er to the next calendar year. 

(b) Only whole credit hours can be carried 
over. 

Slatutoty Authority G.S. 58-33-/30. 

.0X05 CAI.Cl L.VTION OF CRKDIT IIOIRS 

1 he following standards shall be used to evalu- 
ate courses submitted for continuing education 
approval: 

( 1 ) Programs requiring meeting or classroom 
attendance: 

(a) Courses of less than 1 20 minutes will not 
be evaluated for continuing education 
credit hours. 

(b) Courses wiU not be approved for less than 
one credit hour. 

(c) One credit hour shaU be awarded for each 
60 minutes of instruction unless the 
Commissioner assiims fewer credit hours 



Statutory Authority G.S. 5S-33-/30. 

.0806 AITENDANCE 

(a) Meeting or classroom courses with no 
exam: 

(1) If four credit hours or less are assigned to 
a course, the licensee must attend 100 
percent of the course to receive any credit. 

(2) If more than four credit hours are assigned 
to a course, the licensee must attend a 
minimum of 80 percent of the course to 
receive any credit. 

(b) Meeting or classroom programs with ex- 
ams: 

(1) If four credit hours or less are assigned to 
a course, the licensee must attend 100 
percent of the course to receive any credit. 

(2) If more than four credit hours are assigned 
to a course, and the Ucensee passes the 
exam and attends at least 80 percent of the 
course, the licensee shall receive 100 per- 
cent of the credit hours assigned to the 
course. 

(3) If more than four credit hours are assigned 
to a course, and the licensee fails the exam 



5:S NORTH CAROLINA REGISTER July 16, 1990 



522 



PROPOSED RULES 



but attends at least 80 percent of the 
course, the Hcensee shall receive 50 per- 
cent of the credit hours assigned to the 
course. 

Statutory Authority G.S. 5S-33-I30. 

.0807 HARDSHIP 

A licensee may appeal for relief to the Com- 
missioner by January 1 5 of the year immediately 
following the calendar year for which the mini- 
mum required credit hours were not obtained. 
Upon a finding of reasonable cause, the Com- 
missioner may extend the time for the licensee to 
complete the requirement. 

Statutory Authority G.S. 5S-33-/30. 

.0808 INSTRLCTOR QL ALIFICVFION 

(a) Instructor qualification requirements shall 
be the same as those for lead instructors as pro- 
vided m 1 1 NC.\C 6A .0705(d)( 1 ) and (2), except 
that the Commissioner may appro\e instructors 
possessing specific areas of expertise to instruct 
courses comprising those areas of expertise. 

(b) Insurance company trainers as instructors 
must be full time salaned emplo\ees of the in- 
surance company sponsoring the course and 
must ha\e as part of their full time responsibil- 
ities the duty to pro\ide insurance company 
training. 

(c) College and unisersity instructors may be 
fuU time or adjunct facult\" of the accredited col- 
lege or uni\'ersity, must be teaching a cumculum 
course in his or her field of expertise, and must 
meet the requirements of the association that ac- 
credits the college or uni\'ersity. 

Statutory Authority G.S. 5S-33-/30. 

.0809 APPRO\ AL OF COLRSES 

(a) Pro\iders of all courses specificallv ap- 
proved under 11 NCAC 6A .0803 must file 
copies of program catalogs, course outlines, 
copies of advertising literature, the correct fee, 
and any other documents or related materials 
that the Commissioner requests, pnor to January 
1, 1991, and within 30 days of any changes to 
such programs in the future. 

(b) All pro\iders of courses not specifically 
appro\-ed under 1 1 NCAC 6.\ .0803 must do the 
following: 

(1) .\ny indisidual. school, insurance com- 
pan\ . insurance industry association, or 
other organization intending to provide 
classes, seminars, or other forms of in- 
struction as appro\"ed courses shall apply 
on forms pro\idcd b\ the Commissioner; 



pay the correct fee; and provide the re- 
quested number of copies of detailed out- 
lines of the subject matter to be covered, 
copies of handouts to be given, the quah- 
fications of each instructor, and other in- 
formation requested by the Commissioner 
to suppKDrt the request for approval. 

(2) The outline shall include a statement of 
the method used to determine whether 
there will be meaningful attainments of 
education by licensees to be certified upon 
their satisfactory completion of the 
course. Such method may be a written 
examination, a written report, certification 
of attendance only, or other methods ap- 
pro%'ed by the Commissioner. The out- 
line shall describe the method of 
presentation. 

(3) Providers of supervised individual study 
programs must file the requested number 
of copies of the study programs. Extra 
copies wiQ be returned to a provider after 
course appro\al if a return fee is paid in 
advance. 

(4) Such applications and accompan\ing in- 
formation must be receised b\' the Com- 
missioner at least 30 days prior- to the 
intended beginning date of the course. 

(5) The Corrunissioner shall approve or deny 
the application; and shall indicate the 
number of credit hours that ha\e been 
assigned to the course if approved. If a 
course is not appro\ed or is disapproved 
within 60 days after receipt of all required 
information, the course is deemed to be 
approN'ed at the end of the 60-day period. 

(6) If a course approval application is denied, 
a written explanation of the reason for 
such action shall be furnished with the 
denial. 

(c) Course approval applications must include 
all of the following forms and attached informa- 
tion in exactly the following order: 

(1) .A cover letter with payment of the fee, 
w'liich fee is dctcnnined by the Commis- 
sioner, attached with separate paragraphs 
for the following: 

(A) a request that the course be c\aluated: 

(B) for whom the course is designed; 

(C) the course objecti\cs; 

■ (D) the names and duties of all persons who 
will be affiliated in an otTicial capacity 
with the course: and 

(E) the course pro\ider's tuition and fee 
refund policy. 

(2) The course content outline with instruc- 
tion hours assigned to the major topics; 



523 



5:S NORTH CAROLINA REGISTER Jnlv 16, 1990 



PROPOSED RULES 



(3) Instructor qualification form and instruc- 
tor resume if not pre\iously approved; 
and 

(4) Schedule of dates, beginning and ending 
times and places the course will be offered, 
along with the names of instructors for 
each course session. Schedules shall be 
submitted at least 30 days in advance of 
any subsequent course offerings but it wiU 
not be necessary that courses be resub- 
mitted unless there are substantial changes 
in content. 

(d) The Commissioner may waive this Section 
when it is deemed by the Commissioner to be 
necessary. 

(e) A pro\ider may request that its materials 
be kept confidential if they are of a propnetan.' 
nature. The Commissioner will re\iew and 
promptly return such extra copies of materials if 
a return fee is paid in advance. 

Statutoty Authority G.S. 5S-33-I30. 

.0810 AI)\KRTISING 

(a) This Rules apphes to for-profit course pro- 
viders. 

(b) Courses shall not be advertised as approved 
for credit hours unless such approval has been 
granted by the Commissioner in writing. 

(c) When a course has been approved for credit 
hours and is advertised as such, the advertisement 
shall include: 

( 1) the number of approved credit hours; 

(2) the type of licensee for whom the course 
would be most applicable; and 

(3) all fees and associated expenses. 

(d) Advertisements shall be complete, truthful, 
clear, and not deceptive or misleading. 

(e) The Commissioner may withdraw his ap- 
proval of any violator to provide or conduct 
courses. 

Statutory Authority G.S. 5S-33-/30. 

.0811 S.ANCTIONS FOR NONCOMPLIANCE 

(a) 1 his Rule establishes sanctions for licensees 
who fail to complete their annual continuing ed- 
ucation requirements and for licensees, course 
providers, and course provider personnel who 
falsify an\' records or documents in connection 
with the continuing education program or who 
do not comply with G.S. 58-33-125 or this Sec- 
tion. 

(b) The failure of a licensee to meet the annual 
continuing education requirement shall result in 
the nonrenewal of his or her license for the sub- 
sequent calendar year. To reapply, such person 
shall meet all requirements for new Ucensees. 



(c) The Commissioner may suspend, revoke, 
or refuse to renew a license for any of the fol- 
lowing causes: 

(1) Failure to timely respond to insurance 
department inquiries, including continu- 
ing education audit requests. 

(2) Requesting an extension or waiver under 
false pretenses. 

(3) Refusing to cooperate with insurance de- 
partment employees in an investigation. 

(d) The Commissioner may suspend, revoke, 
or refuse to renew a course provider's authority 
to offer courses for any of the following causes: 

(1) Advertising that a course is approved be- 
fore the Commissioner has granted such 
approval in writing. 

(2) Submitting a course outline with material 
inaccuracies, either in length, presentation 
time, or topic content. 

(3) Presenting or using unapproved material 
in providing an appro\ed course. 

(4) Failing to conduct a course for the full 
time specified in the approval request 
submitted to the Commissioner. 

(5) Preparing and distributing certificates of 
attendance or completion before the 
course has been appro\ed. 

(6) Issuing certificates of attendance or com- 
pletion prior to the completion of the 
course. 

(7) Failing to issue certificates of attendance 
or completion to any Ucensee who satis- 
factorily completes a course. 

(8) Failing to promptly notify the Commis- 
sioner of suspected or known improper 
activities. 

(9) Any violation of the North Carolina 
General Statutes or Administrative Code. 

(e) A course provider is responsible for the ac- 
ti\-ities of persons conducting, supen'ising, in- 
structing, proctoring, monitoring, moderating, 
facihtating, or in any way responsible for the 
conduct of any of the actiN'ities associated with 
the course. 

(f) In addition, the Conunissioner may require 
any one of the following upon a finding of a vi- 
olation of this Section: 

( 1 ) Refunding all course tuition and fees to 
licensees. 

(2) Providing licensees with a suitable course 
to replace the course that was found in 
violation. 

(3) Withdrawal of approval of courses spon- 
sored by such pro\ider for a period deter- 
mined by the Commissioner. 

(g) The Commissioner may suspend, revoke, 
or refuse to renew the insurance hccnses of pro- 



5:S NORTH CAROLINA REGISTER July 16, 1990 



524 



PROPOSED RULES 



vider personnel for noncompliance with G.S. 
58-33-130 or this Section. 

Statutory Authority G.S. 5S-33-J30. 

****************** 



A^. 



' otice is hereby given in accordance with G.S. 
1 508- 1 2 that the N.C. Department of Insurance 
intends to adopt rulefs) cited as 1 1 SCAC 1 1.4 
.050/ - .05/3. 

1 he proposed cffecti\'e date of this action is .No- 
vember I. /990. 

1 he public hearing will be conducted at / .00 
p.m. on .August 15, /990 at 430 ,V. Salisbwy 
Street, Dobbs Building, 3rd Floor I-fearing Room, 
Raleigh, .\.C. 276//. 



Co 



■ omment Procedures: Written comments may 
be sent to Ray Martinez, P.O. Bo.x 2638^, 
Raleigh, .\.C. 276/1. Oral presentations may be 
made at the public hearing. .Anyone having 
questions should call Rav .Martinez at (9/9) 
733-5633 or Ellen Sprenkel at (919) 733-4:'00. 



CHAPTER II 



FINANCIAL EVALLATION 
DIMSION 



Sl.BCHAPTKR llA - CKNERAL PROVISIONS 
SECTION .0500 - CPA AUDITS 

.0501 PURPOSE AND SCOPE 

(a) The purpose of this Section is to improve 
the Department s surveillance of the fuiancial 
condition of insurers by requiring an annual ex- 
amination by CPAs of the financial statements 
reporting the financial condition and the results 
of operations of insurers. 

(b) This Section applies to aU insurers: pro- 
vided that insurers having direct premiums writ- 
ten in North Carolina of less than two hundred 
fifty thousand dollars ($250,000) in any year and 
having less than 500 policyholders in North 
Carolina at the end of any year are exempt from 
this Section for such year unless the Commis- 
sioner makes a specific finding that compliance 
is neccssar)^ for the Commissioner to carPv' out 
statutory responsibilities. 

(c) Insurers filing audited fmancial reports in 
another state, pursuant to such other state's re- 
quirement of audited financial reports that has 
been found by the Commissioner to be substan- 
tially similar to the requirements of this Section, 
may be exempt trom this Section if: 



(1) A copy of the Audited Financial Report 
and Report on Internal Control Structure 
Related Matters Noted in an Audit that 
are filed with such other state are filed 
with the Commissioner in accordance 
with the filing date specified in 1 1 NCAC 
llA .0503 and 11 NCAC llA .0510, re- 
spectively. 

(2) A copy of any Notification of Adverse 
Financial Condition Report filed with 
such other state is filed with the Com- 
missioner within the time specified in 1 1 
NCAC llA .0509. 

This Section does not prohibit, preclude, or in 
any way limit the Commissioner from ordering, 
conducting, or performing examinations of 
insurers under the General Statutes or this Title. 

Statutorj' Authority G.S. 58-2-205. 

.0502 DEFINITIONS 

As used in this Section: 

(1) ".Audited fmancial report" means those 
items specified in 11 NCAC llA .0504. 

(2) "Commissioner" means the Commissioner 
of Insurance of North Carolina or his au- 
thorized representative. 

(3) "CPA" means an independent certified 
public accountant or accounting firm in 
good standing with the American Institute 
of Certified Public Accountants and in aU 
states in which they are licensed to practice. 

(4) "Department" means the North Carohna 
Department of Insurance. 

(5) "Insurer" means a domestic insurer as de- 
fmed in /Vrticle 7 and .Article 1 5 of Chapter 
58 of the General Statutes. 

Statutory Authority G.S. 58-2-205. 

.0503 Fll INC. AND E.MENSIONS FOR 
FILING REPORTS 

(a) /VU insurers shaU have an annual audit by 
a CPA and sh;dl file an audited fmancial report 
with the Commissioner on or before March 15 
for the previous calendar year. 

(b) Extensions of the \larch 15 filing date may 
be granted by the Commissioner for 30-day pe- 
riods upon a showing b> the insurer and its CPA 
the reasons for requesting such extension and a 
detennination by the (Commissioner of good 
cause for an extension. The request for extension 
must be submitted in writing not less than 15 
days prior to the due date and must be in sulh- 
cient detail to permit the Commissioner to make 
an informed decision with respect to the re- 
quested extension. 



525 



5:S NORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



Statutory Authority G.S. 5S-2-205. 

.0504 CONTENTS OF ANNLAL ALDITED 
FINANCIAL RKF»ORT 

(a) The annual Audited Financial Report shall 
report the financial condition of the insurer as of 
the end of the most recent calendar year and the 
results of its operations, cash flows, and changes 
in capital and surplus for such year in conformity 
with statutory accounting practices prescribed, 
or otherwise permitted, by the Department. 

(b) The annual Audited Financial Report shall 
include the following: 

(1) Report of CPA. 

(2) Balance sheet reporting total assets, ad- 
mitted assets, liabilities, capital and sur- 
plus. 

(3) Statement of gain or loss from operations. 

(4) Statement of cash flows. 

(5) Statement of changes in capital and sur- 
plus. 

(6) Notes to financial statements. These notes 
shall be those required by the annual 
statement and by generally accepted ac- 
counting principles and shall include: 

(A) ,A reconciliation of difterences, if any, 
between the audited statutory financial 
statements and the Annual Statement fded 
pursuant to G.S. 58-2-165 with a written 
description of the nature of these differ- 
ences, and 

(B) A narrative explanation of all significant 
intercompany transactions and balances. 

(7) The financial statements included in the 
.\udited Financial Report shall be pre- 
pared in a form and using language and 
groupings the same as the relevant 
sections of the Annual Statement of the 
insurer filed with the (Commissioner, and: 

(.\) Ihe financial statement shall be com- 
parative, presenting the amounts as of 
December 31 of the current year and the 
amounts as of the immediately preceding 
December 31; provided, however, in the 
first year in which an insurer is required 
to file an audited financial report, the 
comparative data may be omitted. 

(B) Amounts may be rounded to the near- 
est dollar. 

Statuloty Authority G.S. 5S-2-205. 

.0505 DFSKiN.VTION OF CI'A 

(a) Fach insurer required by this Section to file 
an annual audited financial report must within 
60 days after becoming subject to such require- 
ment, register with the Commissioner in writing 
the name and address of the Cl'.A retained to 



conduct the annual audit set forth in this Section. 
Insurers not retaining a CPA on the effective date 
of this Section shall register the name and address 
of their retained CPA not less than six months 
before the date when the first certification is to 
be filed. 

(b) The insurer shall obtain a letter from such 
CPA, and file a copy with the Commissioner 
stating that the accountant is aware of the pro- 
visions of the North Carolina General Statutes 
and Administrative Code that relate to account- 
ing and fmancial matters and alfirming that he 
will express his opinion on the financial state- 
ments in the terms of their conformity to the 
statutory accounting practices prescribed or oth- 
erwise permitted by the Department, 'specifying 
such exceptions as he may believe appropriate. 

(c) If a CPA who was not the CPA for the 
immediately preceding fded audited fmancial re- 
port is engaged to audit the insurer's fmancial 
statements, the insurer shall within 30 days of the 
date the CP.A is engaged notif\ the Department 
of this event. The insurer shall also furnish the 
Commissioner with a separate letter stating 
whether in the 24 months preceding such en- 
gagement there were any disagreements with the 
former CPA on any matter of accounting princi- 
ples or practices, financial statement disclosure, 
or auditing scope or procedure, which disagree- 
ments, if not resolved to the satisfaction of the 
former accountant, would have caused him to 
make reference to the subject matter of the disa- 
greement in connection with his opinion. The 
insurer shaU also in writing request such tormer 
CPA to furnish a letter addressed to the insurer 
stating whether the CPA agrees with the state- 
ments contained in the insurer's letter, and, if 
not, stating the reasons for which he does not 
agree; and the insurer shall furnish such respon- 
sive letter from the former (CP.\ to the Commis- 
sioner together with its own. 

Statutory Authority G.S. 5S-2-205. 

.0506 QUAFIFICAIIONS OF INDKl'ENDENT 
CPA 

(a) The Commissioner shall not recognize any 
person or firm as a CPA that is not in good 
standing with the American Institute of Certified 
Public Accountants and in all states in w hich the 
CP.A IS licensed to practice. 

(b) Fxcept as otherwise pro\ided in this Sec- 
tion, a CPA shall be recognized as independent 
as long as he or she conforms to the standards 
of his or her profession, as contained in the Code 
of Professional Fthics of the .American Institute 
of Certified Public .Accountants and Rules and 
Resnilations and Code of Ftliics and Rules of 



5:8 NORTH CAROLINA REGISTER July 16,1990 



526 



PROPOSED RULES 



F'rofessional Conduct of the North Carolina 
Board ot~ Public Accountancy, or similar code, 
(c) The Commissioner may hold a hearing to 
determine whether a CF'A is independent and, 
considering the evidence presented, may rule that 
the CPA is not independent for purposes of ex- 
pressing his opinion on the fmancial statements 
in the annual Audited Financial Report made 
pursuant to this Section and require the insurer 
to replace the CPA with another whose relation- 
ship with the insurer is independent within the 
meaning of this Section. 

Statutory Authority G.S. 58-2-205. 

.0507 .\PI'RO\ .\l. OK CP.V 

(a) CPAs that practice pursuant to the pro- 
visions of this Section must file their intentions 
of such with the Department within 60 days of 
the effective date of this Section and thereafter 
by Januar>' 1 of each year. The Department may 
reject such tiling if the CPA does meet its re- 
quirements. Inclusive within this fding must be 
evidence of the CPA's expertise in the areas of 
insurance auditing and insurance accounting. 
Such evidence must also demonstrate expertise 
in the ;u-eas of insurance auditing and insurance 
accounting for the statT assigned to the audit. 

(h) The CPA will be deemed to be experienced 
in the areas of insurance auditing and accounting 
if the office filing with the Department pursuant 
to this Section has existing audit clients in the 
insurance industry. 

(c) The staff assigned to an audit pursuant to 
this Section will be deemed to be experienced in 
the areas of insurance auditing and accounting 
as foUows: 

( 1) Managerial statT that has been assigned or 
has had responsibility for audit engage- 
ments in the insurance industry in an 
amount averaging at least 50 percent of 
their chargeable time during the last three 
years. 

(2) Nonmanagerial staff that has been as- 
signed or has had responsibiUty for audit 
engagements in the insurance industry in 
an amount averaging at least 25 percent 
of their chargeable time during the last 
three years or during their penod of em- 
ployment if employed less than three 
Nears. 

(d) An audit peri'omied by a CP.\ pursuant to 
this Section shall be staffed by managerial staff 
experienced in the areas of insurance auditing and 
accounting and h\ majority non-managerial staff 
experienced in the areas of insurance auditing and 
accounting. 



Statutory Authority G.S. 58-2-205. 

.0508 SCOPE OF EXAMINATION AND 
REPORT OF CPA 

Financial statements furnished pursuant to 1 1 
NCAC llA .0504 shall be examined by a CPA. 
The examination of the insurer s fmancial state- 
ments shall be conducted in accordance with 
generally accepted auditing standards and such 
other procedures illustrated in the f^'inancial 
Condition Examiner's Handbook promulgated 
by the National Association of Insurance C^om- 
missioners as the CPA deems to be necessary. 
The Commissioner may, from time to time, pre- 
scribe that additional auditing procedures be ob- 
served by the CPA in the examinaticm of the 
tmancial statements of insurers pursuant to this 
Section. 

Statutory Authority G.S. 58-2-205. 

.0509 NOTIFICATION OF AD\ ERSE 
FINANCIAL CONDITION 

(a) The insurer required to furnish the annual 
Audited Financial Report shall require the CPA 
to immediately notify in writing an executive of- 
ficer and all directors of the insurer of the final 
determination by that CPA that the insurer has 
materially misstated its fmancial condition as re- 
ported to the Commissioner as of the balance 
sheet date currently under examination or that 
the insurer does not meet the minimum capital 
and surplus requirements of Chapter 58 of the 
General Statutes as of that date. The insurer 
shall furnish such notification to the Commis- 
sioner within five da\ s of receipt thereof. 

(b) If the CPA, subsequent to the date of the 
Audited Financial Report filed pursuant to this 
Section, becomes aware of facts that might have 
affected his report, the Department notes the 
obligation of the CPA to take such action as 
prescribed in Volume 1, Section AL 561 of the 
Professional Standards of the American Institute 
of Certified Public Accountants. 

Statutory Authority G.S. 5S-2-205. 

.0510 INTERNAL CONTROL STRCCTLRE 
RKLAIEI) MAI ILRS 

(a) In addition to the annual .Audited Financial 
Report, each insurer shall furnish the Commis- 
sioner with a report of matters noted in an audit 
related to the internal control structure. 

(b) A report of the evaluation by the CPA of 
the accounting procedures of the insurer and its 
system of internal control, including any remedial 
action taken or proposed, shall be tiled annually 
by the insurer with the Department at the time 



527 



5:S ^ORTH CAROLIiXA REGISTER July 16,1990 



PROPOSED RILES 



of the filing of the annual Audited l-'inancial Re- 
port. 

(c) Such report shall follow the Form for Re- 
ports on Internal Control Structure Related 
Matters Noted in an Audit described in Volume 
1. Section AU 325, of the Professional Standards 
of the American Institute of Certified Public Ac- 
countants. 

Statutori' Authority G.S. 58-2-205. 

.0511 CF'.V WORKP.VPKRS 

(a) Workpapers are the records kept by the 
CPA of the procedures followed, the tests per- 
formed, the information obtained, and the con- 
clusions reached pertinent to his examination of 
the financial statements of an insurer. 
Workpapers, accordingly, may include work 
programs, analyses, memoranda, letters of con- 
firmation and representation, abstracts of com- 
pan\' documents and schedules, or commentaries 
prepared or obtained b\ the CPA in the course 
of his examination of the financial statements of 
an insurer and that support his opinion thereof 

(b) fivepv' insurer required to file an .Audited 
financial Report pursuant to this Section, shall 
require the CPA (through the insurer) to make 
a\ailable for review by Department examiners, 
the workpapers prepared in the conduct of his 
examination. The completed workpapers and 
any written communications between the CPA 
and the insurer relating to the audit of the insurer 
shall be made a\ailable for re\iew by the De- 
partment at the otTiccs of the insurer, at the De- 
partment, or at an\' other reasonable place as 
mutuall\' agreed between the Department and the 
insurer. The insurer shall require that the CPA 
retain the audit workpapers for a period of not 
less than five years after the period reported 
thereon. 

(c) In the conduct of an\" periodic re\iew by the 
Department examiners, photocopies of pertinent 
audit workpapers ma\' be made and retained by 
the Department. 

Stdtiitoiy Authority G.S. 5S-2-205. 

.0512 F.XKMPTIONS AMI KFFKCTI\F D ATKS 

(a) I pon written application of any insurer, the 
Commissioner may grant an exemption from 
compliance with this Section if the (."ommis- 
sioner finds, upon review of the application, that 
compliance with this Section would constitute a 
financial or organizational hardship upon the 
insurer. .An exemption may be granted at any 
time and from time to time for a specified period 
or periods. Within ten days from a denial of an 
insurer's written request for an exemption from 



this Section, such insurer may request in writing 
a hearing on its application for an exemption. 

(b| Insurers retaining a CPA on the effective 
date of this Section who qualifies under this Sec- 
tion shall comply with this Section for the \ear 
ending December 31, 1990, and each year there- 
after. 

(c) Insurers not retaining a qualified CPA on 
the effective date of this Section may meet the 
following schedule for compliance, unless the 
Commissioner permits otherwise. 

(1) As of December 31, 1990, file with the 
Commissioner: 

(A) Report of CPA. 

(B) Audited balance sheet. 

(C) Notes to audited balance sheet. 

(2| For the year ending December 31, 1990, 
and each year thereafter, such insurers 
shall file with the Commissioner aU re- 
ports required by this Section. 

Statutoty Authority G.S. 5S-2-205. 

.0513 EXAMINATIONS 

(a) Ihe Commissioner shaU detennine the na- 
ture, scope, and frequency of examinations under 
this Section conducted by department examiners 
pursuant to G.S. 58-2-130. Such examinations 
may cover all aspects of the insurer's assets, con- 
dition, affairs, and operations; and may include 
and be supplemented by audit procedures per- 
formed by CPAs as provided in this Section. 
The type of examinations under the provisions 
of this Section pcrtbrmed b\' department exam- 
iners after the etfecti\e date of this Section shall 
be as follows: 

(1) Comprehensive examinations will be per- 
formed when in the judgement of the 
Commissioner that a complete examina- 
tion of the condition and affairs of the 
insurer is necessar>'. 

(2) Compliance examinations may consist of 
a review of the accountant s workpapers 
defined under 11 NCAC 11. A .0511 and a 
general rc\iew of the insurer's corporate 
affairs and insurance operations to deter- 
mine compliance with the North Carolina 
General Statutes and this "Fitle. The ex- 
aminers may perform altematne or addi- 
tional examination prticedures to 
supplement those peiformed by the CP.A 
when the examiners determine that such 
procedures are necessar\' to \enf\" the fi- 
nancial condition of the insurer. 

(3) Targeted examinations may co\er such 
areas as life rcscr\c \aluations. claims an- 
alyses, organizational and capital changes. 



5:S NORTH C.AROLIS.A REGISTER Jiilv 16, 1990 



52,S 



PROPOSED RULES 



and such other areas as the Commissioner 

deems to be appropriate, 
(b) Upon completion of each examination de- 
scribed in this Rule, the examiner appointed by 
the Commissioner shaU make a full and true re- 
port on the results of the examination. Each re- 
port shall include a general description of the 
audit procedures performed h\ the Department 
examiners and the procedures of the CP.A that 
the examiners may ha\e utilized to supplement 
their examination procedures and the procedures 
that were periormed by the CPA if included as a 
supplement to the examination as pro\ided in 
this Section. 

Statuton.- Auihority G.S. 58- 2-205. 

'k-^'kii'k'k-k'k'k'k-k-k-k'k-k-k'k'k 



No 



otice is hereby given in accordance with G.S. 
1 50B-I2 that the S .C. Department of Insurance 
intends to repeal ri/lefsj cited as II SC.-iC 12 
.0801 - .08/4: and adopt ndefs: cited as 1 1 
SCiC 12 .0815 - .0833. 



Th 



he proposed effecti\-c date of this action is .\o- 
xember I. 1990." 



Th 



he public hearing will be conducted at 10:00 
a.m. on .August 17, 1990 at 3rd Floor Hearing 
Room. Dobbs Building. 430 .\. Salisbufj Street. 
Raleigh. .\.C. 2~6II. ^ 



Co 



oniment Procedures: Written comments mar 
be sent to Laurie ScLxton. P.O. Box 2638'^. 
Raleigh. \ .C. 2''6II. Oral presentation may be 
made at the public hearing. .-Inyone having 
questions should call Laurie Sax ton at {919 1 
733-5060. or Ellen K. Sprenkel M i9I9) 
733-4^00. 

CHAPIKK 12 - IJKK: ACCIDKM .VND HEALTH 
niMSION 

SK.n l()\ .0800 - MF.DICARF. SI IM'l.F.MKNT 
INSl RANCH 

.nsoi iM RPOSE (Rfpealf:d) 

.0SII2 APPFK AIHFFFV .WD SCOPE 

(RFPFAl.FD) 
.0803 DFFlNrriONS (REPFAI FD) 
.0804 P()FIC^ DFFINFriONS .\M) TERMS 

(REPEALED) 
.0805 PROHIBITED POLICY PROMSIONS 

(REPEALED) 
.0806 MIMMLM BENEFIT ST.VND.VRDS 

(REI'EALED) 
.0807 SF.VNDARDS FOR CLAIMS PAYMENT 



.0808 
.0809 

.0810 



.081 



.0812 



(REPEALED) 

LOSS R.ATIO STANDARDS (REPEALED) 

FILING REQLIREMEN TS FOR OLT-OF 

-ST.ATE GROLP PO! ICIES (REPEALED) 

PROHIBITED COMPENS.AIION FOR 

REPLACEMENT WITH THE SAME CO 

(REPEALED) 

REQUIRED DISCLOSURE PROVISIONS 

(REPEALED) 

REQUIREMENTS FOR REPLACEMENT 

(REPEALED) 

.081.? FIl.iNC. REQLIREMENTS FOR 
ADVERTISING (REPEALED) 

.0814 FORMS (REPEALED) 

Statuton' Authority G.S. 58-9: 58-710: 58-711: 
58-712: 58-713: 58-714; 58-715; 58-717, 

.0815 PLRPOSE 

The purpose of these Rules is to pro\ide for the 
reasonable standardization of coverage and sim- 
plification of tenns and benefits of .Medicare 
Supplement Policies: to facilitate public under- 
standing and comparison of such pohcies; to 
eliminate provisions contained in such policies 
which may be misleading or confusing in con- 
nection with the purchase of such policies or with 
the settlement of claims; and to pro\ide for full 
disclosures in the sale of accident and sickness 
insurance coverages to persons eligible for Medi- 
care bv reason of ase. 



Statuton' .Authoritv 
58-54-15: 58-54-25'. 



G.S. 58-2-40: ^x<<-54-IO: 



.0816 .VPPLICABILITY AND SCOPE 

(a) Except as otherwise spccificallv pro\ided in 
Title 11 NCAC 12 .0822 and 12 .0823, this Rule 
shall appl\" to: 

( 1 ) AU Medicare Supplement Policies and 
subscriber contracts deli%ered or issued for 
deliven,' in this state on or after the effec- 
tive date hereof, and 

.AU certificates issued under group .Medi- 
care Supplement Policies or subscnber 
contracts, which certificates have been 
delivered or issued for deli\'er\" in this 
state. 

Ihis Rule shall not apply to a polic\" or 
contract of one or more employers or labor or- 
ganizations, or of the trustees of a fund estab- 
lished b\" one or more cmplo\ers or labor 
organizations, or combination thereof, for em- 
plo\'ees or former employees, or a combination 
thereof, or for members, or a combination 
thereof of the labor organizations. 

Statuto/y Authority G.S. 58-2-40: 58-54-5. 
.0817 DEFINITIONS 



(2) 



lb)- 



529 



5:S AORTH CAROLEXA REGLSTER July 16, 1990 



PROPOSED RULES 



For the purpose of these Rules: 

(1) "Applicant" means: 

(a) in the case of an individual Medicare 
Supplement Policy or subscriber contract, 
the person who seeks to contract for in- 
surance benefits, and 

(b) in the case of a group Medicare Supple- 
ment Policy or subscriber contract, the 
proposed certificateholder. 

(2) "Certificate" means, for the purpose of 
these Rules, any certificate issued under a 
group Medicare Supplement F'olicy, which 
certificate has been delivered or issued for 
deliver)' in this state. 

(3) "Medicare Supplement Policy" means a 
group or individual policy of accident and 
health insurance or a subscriber contract of 
hospital and medical service corporations or 
health maintenance organizations which is 
advertised, marketed or designed primarily 
as a supplement to reimbursements under 
Medicare for the hospital, medical or surgi- 
cal expenses of persons eligible for Medicare 
by reason of age. 

Statutory Aiithnhty G.S. 5S-2-40: 5S-54-/. 

.0SI8 t'oi l^^ nKHMTioNS .vno tkrms 

No insurance policy or subscriber contract may 
be advertised, solicited or issued for deliverv' in 
this state as a .Medicare Supplement Policy unless 
such policy or subscriber contract contains defi- 
nitions or terms which conform to the require- 
ments of this Section. 

(1) "Accident", ".Accidental Injurv", or "Ac- 
cidental Means" shall be defined to employ 
"result" language and shall not include 
words which establish an accidental means 
test or use words such as "extemal, \iolent, 
visible wounds" or similar words of de- 
scription or characterization. 

(a) I he definition shall not be more restrictive 
than the following: "InjuPi' or injuries for 
which benefits are provided means acci- 
dental bcidily injur) sustained by the in- 
sured person which is the direct result of 
an accident, independent of disease or 
bodily infirmity or any other cause, and 
occurs while insurance coverage is in 
force." 

(b) Such definition may pro\ide that injunes 
shall niit include injuries for which bene- 
fits are pro\ided or available under any 
workers' compensation, employer's Uabil- 
ity or similar law, unless prohibited by 
law. 

(2) "Benefit Period" or "Medicare Benefit 



P 



..id" shall not be defined as more restric- 



tive than as that defined in the Medicare 
program. 

(3) "Convalescent Nursing Home", "Hxtended 
Care FaciUty", or "Skilled Nursing I-acility" 
shall be defined in relation to its status, fa- 
cilities and available services. 

(a) A definition of such home or facilit)' shall 
not be more restrictive than one requiring 
that it: 

(i) be operated pursuant to law; 

(ii) be approved for payment of Medicare 
benefits or be quahfied to receive such 
approval, if so requested; 

(iii) be primarily engaged in providing, in 
addition to room and board accommo- 
dations, skilled nursing care Under the 
supervision of a duly licensed physician; 

(iv) provide continuous 24 hours a day 
nursing service by or under the super- 
vision of a registered graduate profession 
nurse (R.N.); and 

(v) maintain a daily medical record of each 
patient. 

(b) The definition of such home or facility 
may provide that such term not be inclu- 
sive of: 

(i) any home, facility or part thereof used 

primarily for rest; 
(ii) a home or facility for the aged or for the 

care of drug addicts or alcohoUcs; or 
(iii) a home or facility primarily used for the 

care and treatment of mental diseases or 

disorders, or custodial or educational care. 

(4) "Health Care Fxpenses" means expenses 
of health maintenance organizations associ- 
ated with the deliver) of health care services 
which are analogous to incurred losses of 
insurers. Such expenses shall not include: 

(a) home oHice and overhead costs; 

(b) adsertising costs; 

(c) commissions and other acc|uisition costs; 

(d) ta.xes; 

(e) capital costs; 

(f) administrative costs; or 

(g) claims processing costs. 

(5) "Hospital" may be defined in relation to 
its status, facilities and available services or 
to reflect its accreditation by the .loint 
Commission on Accreditation of Hospitals. 

(a) Ihc definition of the term "hospital" shall 
not be more restricti\e than one reciuiring 
that the hospital: 

(i) be an institution operated pursuant to 
law; and 

(ii) be primarily and continuously engaged 
in providing or operating, either on its 
premises or in facilities axailable to the 
hospital on a prearranged basis and under 



5.-.V NORTH CAROLINA REGISTER July 16,1990 



530 



PROPOSED RULES 



the supen'ision of a staff of duly licensed 
physicians, medical, diagnostic and major 
surgical facilities for the medical care and 
treatment of sick or injured persons on an 
inpatient basis for uhich charge is made; 
and 

(iii) pro\ide 24 hour nursing ser\ice by or 
under the super\'ision of registered gradu- 
ate professional nurses (R.N.s). 
(b) The defmition of the term "hospital" may 
state that such term shall not he inclusive 
of: 

(i) con\alcsccnt homes, con\'aIescent, rest 
or nursing facilities: or 

(ii) facilities primarih affording custodial, 
educational or rehabilitation care: or 

(iii) facilities for the aged, drug addicts or 
alcoholics; or 

(iv) any militax}' or \eterans hospital or 
soldiers home or any hospital contracted 
for or operated by any national govern- 
ment or agency thereof for the treatment 
of members or ex-members of the armed 
forces, except -for services rendered on an 
emergency basis where a legal liability ex- 
ists for charges made to the indn idual for 
such services. 

(6) "Medicare" shall be detlncd in the policy. 
Medicare may be substantialK defined as 
"The Health Insurance for the Aged Act, 
Title Will of the Social Security .Amend- 
ments of 1965 as Then Constituted or Later 
.Ajnended", or " Fitle I. Part I of Public Law 
89-97, as Enacted by the Eighty-Ninth 
Congress of the United States of .America 
and popularly known as the Health Insur- 
ance for the Aged Act, as then constituted 
and any later amendments or substitutes 
thereof, or words of similar import. 

(7) "Medicare Eligible Expenses'' shall mean 
health care expenses of the kinds covered by 
Medicare, to the extent recognized as rea- 
sonable by .Medicare. Payment of benefits 
by insurers for Medicare eligible expenses 
may be conditioned upon the same or less 
restrictive payment conditions, including 
determinations of medical necessity as are 
applicable to Medicare claims. 

(8l ".Mental or Ner\ous Disorders" sh;dl not 
be defined more restricti\ely them a defi- 
nition including neurosis, psychoneurosis, 
ps\chopathy. psychosis, or mental or emo- 
tional disease or disorder of any kind. 

(9) "Nurses" nia\ be defined so that the de- 
scription of nurse is restricted to a type of 
nurse, such as Registered Graduate Profes- 
sional Nurse (R.N). a Licensed Practical 



Nurse (L.P.N.), or a I icensed Vocational 
Nurse (L.V.N.). If the words "nurse", 
"trained nurse", or "registered nurse" are 
used without specific instruction, then the 
use of such terms requires the insurer to 
recognize the services of any individual who 
qualified under such terminology in accord- 
ance with the applicable statutes or admin- 
istrative rules of the licensing or registry 
board of the state. 

(lU) "Ph>sician" may be defined by including 
words such as "duly qualified physician" or 
"duly licensed physician". The use of such 
terms requires an insurer to recognize and to 
accept, to the extent of its obligation under 
the contract, all providers of medical care 
and treatment when such services are within 
the scope of the pro\ider's licensed authority 
and are provided pursuant to applicable 
laws. 

(11) "Sickness" shaU not be defined to be more 
restrictive than the following: "Sickness 
means sickness or disease of an insured per- 
son which first manifests itself after the ef- 
fecti\e date of insurance and while the 
insurance is in force". The definition may 
be further modified to exclude sicknesses or 
diseases for which benefits are pro\ided un- 
der any workers' compensation, occupa- 
tional disease, empkner's liabilit\ or similar 
law. 

Statntoty Auihoriiv G.S. 5S-2-40: 5S-54-5: 
5^-54-10: 58-54-15'. 

.0819 PKOIIIBITKI) I'Ol ICA l'KO\ ISIONS 

(a) No insurance policy or subscriber contract 
may be advertised, solicited or issued for deli\er\' 
in this state as a Medicare Supplement Policy if 
such policy or subscriber contract limits or ex- 
cludes co\erage by t\pe of illness, accident, 
treatment or medical condition, except as fol- 
lows: 

(1) foot care in connection with corns, 
calluses, flat feet, fallen arches, weak feet, 
chronic foot strain, or symptomatic com- 
plaints of the feet; 

(2) mental or emotional disorders, alcoholism 
and drug addiction: 

(3) illness, treatment or medical condition 
ansing out of 

(.\) war or act of war (whether declared or 
undeclared); participation in a felon\'. riot 
or msurrection; ser\ice in the armed forces 
or units auxilian,' thereto: 

(B) suicide (sane or insane), attempted sui- 
cide or intentionally self-inflicted injur}'; 

(C) asiation; 



5.U 



5:S XORTII CAROLI.XA REGISTER July 16.1990 



PROPOSED RULES 



(4) cosmetic surgery, except that "cosmetic 
surgery" shall not include reconstructive 
surgery when such service is incidental to 
or follows surgery resulting from trauma, 
infection or other diseases of the in\ olved 
part; 

(5) care in connection with the detection and 
correction by manual or mechanical 
means of structural imbalance, distortion, 
or subluxation in the human body for 
purposes of removing nerve interterence 
and the effect thereof, where such inter- 
ference is the result of or related to dis- 
tortion, misalignment or subluxation of 
or in the \ertebral column; 

(6) treatment provided in a governmental 
hospital; benefits provided under Medi- 
care or other governmental program (ex- 
cept Medicaid), any state or federal 
workers' compensation, employer's liabil- 
ity or occupational disease law; services 
rendered by employees of hospitals, labo- 
ratories or other institutions; services per- 
formed by a member of the covered 
person's immediate family and services for 
which no charge is normally made in the 
absence of insurance; 

(7) dental care or treatment; 

(8) e\e glasses, hearing aids and examination 
for the prescription or fitting thereof; 

(9) rest cures, custodial care, transportation 
and routine physical examinations; 

(IIJ) territorial limitations outside the United 
States; 
provided, however, supplemental policies may 
not contain, when issued, limitations or exclu- 
sions of the type enumerated in Paragraphs (a) 
(1), (5), (9), or (10) of this Rule that are more 
restrictive than those of Medicare. Medic;u"e 
Supplement Policies may exclude coverage for 
an> expense to the extent of any benefit available 
to the insured under Medicare. 

(b) No Medicare Supplement I'olicy may use 
waivers to exclude, limit or reduce coverage or 
benefits for specifically named or described pre- 
existing diseases or physical conditions. 

(c) The terms ''Medicare Supplement", 
"Medigap" and words of similar import shall not 
be used unless the policy is issued in compliance 
with this regulation. 

(d) No Medicare Supplement Insurance Policy, 
contract or certificate in force in the state shall 
contain benefits which duplicate benefits pro- 
vided by Medicare. 

Statutory Authority G.S. 5S-2-40: 58-54- JO. 

.0820 MIMMIM BENEFIT STAND.\RDS 



No insurance policy or subscriber contract may 
be advertised, solicited or issued for delivery in 
this state as a Medicare Supplement Policy which 
does not meet the following minimum standards. 
These are minimum standards and do not pre- 
clude the inclusion of other provisions or benefits 
which are not inconsistent with these standards. 
(1) General Standards. The following stand- 
ards apply to Medicare Supplement PoUcies 
and are in addition to all other requirements 
of this regulation. 

(a) A Medicare Supplement Policy may not 
deny a claim for losses incurred more than 
six months from the effective date of cov- 
erage for a preexisting condition. The 
pohcy may not define a preexisting con- 
dition more restrictively than a condition 
for which medical advice was given or 
treatment was recommended by or re- 
ceived from a physician within six months 
before the effective date of coverage. 

(b) A Medicare Supplement Policy may not 
indemnify against losses resulting from 
sickness on a different basis than losses 
resulting from accidents. 

(c) A Medicare Supplement Policy shall pro- 
vide that benefits designed to cover cost 
sharing amounts under .Medicare will be 
changed automatically to coincide with 
any changes in the applicable Medicare 
deductible amount and copayment per- 
centage factors. Premiums may be modi- 
fied to correspond with such changes. 

(d) A "noncancellable", "guaranteed 
renewable", or "noncancellable and guar- 
anteed renewable" Medicare Supplement 
Policy shall not; 

(i) provide for tcimination of coverage of a 
spouse solely because of the occurrence 
of an event specified for termination of 
coverage of the insured, other than the 
nonpayment of premium; or 

(ii) be cancelled or nonrenewed b\ the 
insurer solely on the grounds of deteri- 
oration of health. 

(e) Except as authorized by the Commissioner 
of this state, an insurer shall neither cancel 
nor nonrenew a Medicare Supplement 
policy or certificate for any reason other 
than nonpayment of premium or material 
misrepresentation. 

(f) If a group Medicare Supplement insurance 
policy is terminated by the group 
policyholder and not replaced as provided 
in Subparagraph (h) of this Rule, the 
insurer shall offer certificate holders an 
individu;d Medicare Supplement policy. 



5:8 NORTH CAROLINA REGLSTER Jiilv 16,1990 



532 



PROPOSED RULES 



The insurer shall offer the certificateholder 
at least the tbllowing choices: 

(i) an individual \ledicare Supplement 
policy which presides for continuation of 
the benefits contained in the group policy; 
and 

(ii) an mdisidual Medicare Supplement 
policy which provides only such benefits 
as are required to meet the minimum 
standards. 
(g) If membership in a group is terminated, 
the insurer shall: 

(i) offer the certLficateholder such conver- 
sion opportunities as are described in 
Subparagraph (f) of this Rule; or 

(ii) at the option of the group policyholder, 
offer the certificateholder continuation of 
coverage under the group policy. 
(h) If a group Medicare Supplement policy is 
replaced by another group .Medicare Sup- 
plement policy purchased by the same 
policyholder, the succeedmg insurer shaU 
offer co\erage to all persons covered un- 
der the old group policy on its date of 
termination. Coverage under the new 
group pohcy shall not result in any exclu- 
sion for preexisting conditions that would 
ha\e been cos'ered under the group policy 
being replaced, 
(i) Termination of a Medicare Supplement 
Policy shall be without prejudice to any 
continuous loss which commenced while 
the policy was in force, but the extension 
of benefits beyond the period during 
which the policy was in torce may be 
predicated upon the continuous total dis- 
ability of the insured, limited to the dura- 
tion of the policy benefit period, if any, 
or payment of the maximum benefits. 
(2) Minimum Benefit Standards. 

(a) Coverage of I'art A Medicare eligible ex- 
penses for hospitalization to the extent 
not covered b\' Medicare from the 61st 
da>" through the 9flth day in any Medicare 
benefit penod; 

(b) CoNcrage for either all or none of the 
Medicare Part A mpatient hospital 
deductible amount; 

(c) Coverage of Part A .Medicare eligible ex- 
penses incurred as daily hospital charges 
during use of .Medicare's lifetime hospital 
inpatient reserve days; 

(d) Lpon exhaustion of all .Medicare hospital 
inpatient co\erage including the lifetime 
resen'e da\s. co\erage of 90 percent of all 
Medicare Part A eligible expenses for 
hospitalization not co\"ered by .Medicare 



subject to a lifetime maximum benefit of 
an additional 365 days; 
(e) Coverage under Medicare Part A for the 
reasonable cost of the first three pints of 
blood (or equivalent quantities of packed 
red blood cells, as defined under federal 
regulations) unless replaced in accordance 
with federal regulations or already paid for 
under Part B; 
(0 Coverage for the coinsurance amount of 
Medicare eligible expenses under Part B 
regardless of hospital confinement, subject 
to a maximum calendar year out-of- 
pocket amount equal to the Medicare Part 
B deductible |seventy-five dollars ($75.00)] 
maximum benefit. I'ffecti\e .lanuary 1, 
1990, coverage for the coinsurance 
amount (20 percent) of .Medicare eligible 
expenses for covered outpatient drugs 
used in immunosuppressive therapy sub- 
ject to the Medicare deductible amount is 
included within this pro\ision: 
(g) Pffective Januarv' 1. 1990, coverage under 
Medicare Part B for the reasonable cost 
of the first three pints of blood (or equiv- 
alent quantities of packed red blood cells, 
as defined under federal regulations), un- 
less replaced in accordance with federal 
regulations or already paid for under Part 
A, subject to the .\ledicare deductible 
amount. 
(3) .Medicare Eligible Expenses. Medicare eli- 
gible expenses shall mean health care ex- 
penses of the kinds covered by .Medicare, to 
the extent recognized as reasonable by 
Medicare. Pa\ment of benefits by insurers 
for .Medicare eligible expenses may be con- 
ditioned upon the same or less restricti\e 
payment conditions, including determi- 
nations of medical necessity as are applicable 
to .Medicare claims. 

Statuton' Auihoriiv G.S. 5S-2-40: 5S-54-I0: 
58-34-15. 

.0821 Sr.WDARDS lOK CLAIMS PA^MKNT 

(a) Everv' entity providing .Medicare Supple- 
ment Policies or contracts shall comply with all 
proN'isions of Section 40S1 of the Omnibus 
Budget Reconciliation Act of 1987 (P.L. 
100-203). 

(b) Compliance with the requirements set forth 
in Paragraph (a) of this Rule must be certified 
on the Medicare Supplement insurance experi- 
ence reporting form. 

Shituioiy Aiuhoriiy G.S. 53-2-40: 5S-54-/5. 



533 



5:S NOR TH CA ROUS A R EG IS TER July 16, 1990 



PROPOSED RULES 



.0822 LOSS RATIO STANDARDS 

Medicare Supplement Policies shall return to 
policyholders in the form of aggregate benefits 
under the policy, for the entire period for which 
rates are computed to provide coverage, on the 
basis of incurred claims experience or incurred 
health care expenses where coverage is provided 
by a health maintenance organization on a ser- 
vice rather than reimbursement basis and earned 
premiums for such period and in accordance with 
accepted actuarial principles and practices: 

(1) At least 75 percent of the aggregate amount 
of premiums earned in the case of group 
policies, and 

(2) At least 65 percent of the aggregate amount 
of premiums earned in the case of individual 
policies. All fiUngs of rates and rating 
schedules shall demonstrate that actual and 
expected losses in relation to premiums 
comply with the requirements of this Sec- 
tion. 

(3) Every entity providing Medicare Supple- 
ment Policies in this state shall file annually 
its rates, rating schedule and supporting 
documentation including ratios of incurred 
losses to earned premiums by number of 
years of policy duration demonstrating that 
it is in compliance with the foregoing appli- 
cable loss ratio standards and that the period 
for which the policy is rated is reasonable in 
accordance with accepted actuarial principles 
and experience. For the purposes of this 
Section, pohcy forms shall be deemed to 
comply with the loss ratio standards if: 

(a) for the most recent year, the ratio of the 
incurred losses to earned premiums for 
policies or certificates which have been in 
force for three years or more is greater 
than or equal to the applicable percent- 
ages contained in this Section; and 

(b) the expected losses in relation to premi- 
ums over the entire period for which the 
policy is rated comply with the require- 
ments of this Section. An expected 
third-year loss ratio which is greater than 
or equal to the applicable percentage shall 
be demonstrated for policies or certificates 
in force less than three years. 

(4) As soon as practicable, but prior to the ef- 
fective date of Medicare benefit changes, ev- 
ery insurer, health care service plan or other 
entity providing .Medicare Supplement in- 
surance of contracts in this state shall file 
with the Commissioner, in accordance with 
the applicable filing procedures of this state; 

(a) Appropriate premium adjustments neces- 
sary to produce loss ratios as originally 
anticipated for the applicable policies or 



contracts. Such supporting documents as 
necessary to justify the adjustment shall 
accompany the filing, and 

(b) Every insurer, health care ser\'ice plan or 
other entity providing Medicare Supple- 
ment insurance or benefits to a resident 
of this state pursuant to Article 54 of 
Chapter 58 of the North Carolina General 
Statutes shall make such premium adjust- 
ments as are necessary to produce an ex- 
pected loss ratio under such policy or 
contract as will conform with minimum 
loss ratio standards for Medicare Supple- 
ment Policies and which are expected to 
result in a loss ratio at least as great as that 
originally anticipated in the rates used to 
produce current premiums by the insurer, 
health care service plan or other entity for 
such Medicare Supplement Insurance 
Policies or contracts. No premium ad- 
justment which would modify the loss ra- 
tio experience under the policy other than 
the adjustments described herein should 
be made with respect to a policy at any 
time other than upon its renewal date or 
anniversary date. 

(c) Any appropriate riders, endorsements or 
policy forms needed to accomplish the 
Medicare Supplement insurance modifi- 
cations necessary to eliminate benefit du- 
plications with Medicare. Any such 
endorsements or policy forms shall pro- 
vide a clear description of the Medicare 
Supplement benefits provided by the pol- 
icy or contract. 

Statutory Authority G.S. 58-2-40; 5S-54-20. 

.0823 FILING REQl IRKMENTS FOR OUT- 
OF-STATE GKOl P POLICIES 

Every insurer providing group Medicare Sup- 
plement insurance benefits to a resident of this 
state pursuant to Article 54 of Chapter 58 of the 
North Carolina General Statutes shall file a copy 
of the master policy and any certificate used in 
this state in accordance with the filing require- 
ments and procedures appUcable to group .Medi- 
care Supplement Policies issued in this state; 
provided, however, that no insurer shall be re- 
quired to make a filing earlier than 3 1 days after 
insurance was provided to a resident of this state 
under a master policy issued for dehvery outside 
this state. 

Statutoiy Authority G.S. 5S-2-40; 58-54-20. 

.0824 KEQl IRED DISCI OSLRE PROVISIONS 

(a) General Rules. 



5:S NORTH CAROLINA REGISTER July 16. 1990 



534 



PROPOSED RULES 



(1) Medicare Supplement Policies shall in- 
clude a renewal or continuation provision. 
The language or specifications of such 
provisions must be consistent with the 
type of contract issued. Such provision 
shall be appropriately captioned and shall 
appear on the fu'st page of the pobcy. 

(2) Except for riders or endorsements by 
which the insurer effectuates a request 
made in writing by the insured, e.xercises 
a specifically reserved right under a Medi- 
care Supplement Pohcy, or is required to 
reduce or eliminate benefits to avoid du- 
plication of Medicare benefits; all riders 
or endorsements added to a .Medicare 
Supplement Policy after date of issue or 
at reinstatement or renewal which reduce 
or eliminate benefits or coverage in the 
policy shall require a signed acceptance 
by the insured. After the date of pohcy 
issue, any rider or endorsement which in- 
creases benefits or coverage with a con- 
comitant increase in premium during the 
pohcy term must be agreed to in writing 
signed by the insured, unless the benefits 
are required by the minimum standards 
for .Medicare Supplement Insurance Poli- 
cies, or if the increased benefits or co\er- 
age is required by law. Where a separate 
additional premium is charged for benefits 
provided in connection with riders or 
endorsements, such premium charge shall 
be set forth in the pohcy. 

(3) A .Medicare Supplement PoUcy which 
pro\ides for the payment of benefits based 
on standards described as "usual and cus- 
tomary", "reasonable and customary" or 
words of similar import shall include a 
definition of such terms and an explana- 
tion of such terms in its accompanying 
outline of coverage. 

(4) If a Medicare Supplement Pohcy contains 
any hmitations with respect to preexisting 
conditions, such limitations must appear 
as a separate paragraph of the pohcy and 
be labeled as "Preexisting Condition 
Limitations". 

(5) Medicare Supplement Policies or certif- 
icates shall have a notice prominently 
printed on the first page of the policy or 
certificate or attached thereto stating in 
substance that the polic\holder or 
certificateholdcr shall ha\'e the right to re- 
turn the pohcy or certificate witliin 30 
days of its deli\cry and to ha\e the pre- 
mium refunded if after examination of the 
pohcy or certificate, the insured person is 
not satisfied for any reason. 



(6) Insurers issuing accident and health poh- 
cies, certificates or subscriber contracts 
which provide hospital or medical expense 
coverage on an expense incurred or 
indemnity basis, other than incidentally, 
to persons ehgible for Medicare by reason 
of age shall provide to all appUcants a 
copy of the North Carolina Buyer's Guide 
and the .Medicare Supplement Buyer's 
Guide in the form developed jointly by 
the National Association of Insurance 
Commissioners and the Flealth Care Fi- 
nancing Administration. Dehvery of the 
Buyer's Guide shall be made whether or 
not such pohcies, certificates or subscriber 
contracts are advertised, soUcited or issued 
as .\Iedicare Supplement Policies as de- 
fined in this Rule. Except in the case of 
direct response insurers, dehvery of the 
Buyer's Guide shall be made to the appli- 
cant at the time of appUcation and ac- 
knowledgement of receipt of the Buyer's 
Guide shall be obtained by the insurer. 
Direct response insurers shaU dehver the 
Buyer's Guide to the apphcant upon re- 
quest but not later than at the time the 
pohcy is dehvered. 
(b) Notice Requirements. 

(1) As soon as practicable, but no later than 
30 days prior to the annual effective date 
of any Medicare benefit changes, every 
insurer, health care ser\'ice plan or other 
entity providing Medicare Supplement in- 
surance or benefits to a resident of this 
state shall notify its policyholders, con- 
tract holders and certificate holders of 
modifications it has made to Medicare 
Supplement Insurance Pohcies or con- 
tracts in a format acceptable to the Com- 
missioner or in the format prescribed in 
Title 11 NCAC 12 .0832 (Form A) if no 
other format is prescribed by the Com- 
missioner as follows: 

(.•\) Include a description of revisions to the 
.Medicare program and a description of 
each modification made to the coverage 
pro\ided under the .Medicare Supplement 
Insurance Policy or contract, and 

(B) Inform each covered person as to when 
any premium adjustment is to be made 
due to changes in Medicare. 

(2) The notice of benefit modifications and 
any premium adjustments shaU be in 
outline form and in clear and simple tenns 
so as to facilitate comprehension. 

(3) Such notices shall not contain or be ac- 
companied by any sohcitation. 



535 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



(c) Outline of coverage requirements for Med- 
icare Supplement Policies. 

(1) Insurers issuing Medicare Supplement 
Policies or certificates for deliver^' in this 
state shall provide an outline of coverage 
to all applicants at the time application is 
made and, except for direct response poli- 
cies, shall obtain an acknowledgement of 
receipt of such outline from the applicant; 
and 

(2) If an outline of co\erage is provided at the 
time of application and the Medicare 
Supplement Policy or certificate is issued 
on a basis which would require revision 
of the outline, a substitute outline of cov- 
erage properly describing the policy or 
certificate when it is delivered and contain 
the following statement, in no less than 
12 point type, immediately above the 
company name: 

"NOTICE: Read this outline of coverage 
carefully. It is not identical to the outline 
of co\erage provided upon application 
and the coverage originally applied for has 
not been issued." 

(3) The outline of coverage provided to ap- 
plicants pursuant to Paragraphs (1) and 
(2) shall be in the form prescribed below: 

(CO\lPAN\ \A\IH1 

OLTLINi: OF Mi;OIC,\RH 

SLPPLFMtXT CONTRAGE AND 

PREMIUM INFORMATION 

L'se this outline to compare benefits and premi- 
ums among policies. 

(A) Read your policy carefully - This out- 
hne of coverage provides a very brief de- 
scription of the important features of your 
poUcy. This is not the insurance contract 
and only the actual policy provisions will 
control. The pohcy itself sets forth in 
detail the rights and obligations of both 
you and your insurance company. It is, 
therefore, important that vou RF.AD 
NOLR POLIO' CARFFLLLYI 

(B) Medicare Supplement Coverage - Poli- 
cies of this category are designed to sup- 
plement Medicare by covering some 
hospital, medical and surgical serv'iccs 
which are partiall\ covered by Medicare. 
Coverage is provided for hospital inpa- 
tient charges and some physician charges, 
subject to any deductibles and copayment 
pro\isions which may be in addition to 
those pro\ided by Medicare, and subject 
to other limitations which may be set 
forth in the policy. The policy does not 



provide benefits for custodial care such as 
help in walking, getting in and out of bed, 
eating, dressing, bathing and taking medi- 
cine (delete if such coverage is provided]. 
(C)(1) [for agents:] 

Neither [insert company's name] nor its 
agents are connected with Medicare. 

(ii) jfor direct responses:] 
[insert company's name] is not connected 
with Medicare. 
(D) ]A brief summary of the major medical 
benefrt gaps in .Medicare Parts A & B with 
a parallel description of supplemental 
benefits, including dollar amounts (and 
indexed copayments or deductibles, as 
appropriate), provided by the 'Medicare 
Supplement co\erage in the following 
order:] 
DESCRIPTION 
I. Minimum standards 
SERVICE 
PART A 

INPATIENT FIOSPITAL SER\ ICES: 
Semi-Private Room & Board 
Miscellaneous Hospital Services 
& Supplies, such as Drugs, 
X-Rays, Lab Tests & Operating Room 
SKILLED NURSING FACIIIT^ CARE 
BLOOD 
PART B 

MEDICAL EXPENSE: 
Services of a Physician/ 
Outpatient Services 
Medical Supplies and other than 
Prescribed Druizs 
BLOOD 
MISCELLANEOUS 

Immunosuppressive Drugs 



THIS POLICY PA^S** 



^"or WW 



DESCRIPTION 
II. Additional Benefits 
PARI A 

Part A Deductible 

Private Rooms 

In-Hospital Private Nurses 
PART A & B 

Home Health Services 
PARI B 

Part B Deductible 

Medical Charges in Excess of 

Medicare Allowable Lxpenses 

(Percentage Paid) 
OUTOF POCKLI MA.XIMUM 
PRESCRIPTION DRUGS 
MISCELLANEOUS 

Respite Care Benefits 

Hxpensc Incurred in 

Forciim Country' 



5:8 NORTH CAROLINA REGISTER July 16,1990 



536 



PROPOSED RULES 



OIHER: 



THIS POLICY PAYS 



TOTAL PREMIUM 



YOU PAY 



IN ADDITION TO IHIS OUTLINE OF COV- 
ER.-\GE, [INSLR.ANCE COMPANY NAME] 
WILL SEND AN ANNUAL NOTICE TO YOU 30 
DAYS PRIOR TO THE EFFECTIVE DATE OF 
MEDICARE CHANGES WHICH WILL DE- 
SCRIBE THESE CHANGES AND THE 
CHANGES IN \OLR MEDICARE SLFPLE- 
MENT CO\ ER.AGE. 

**If this policy does not pro\ide coverage 
for a benefit listed in this Rule, the insurer 
must state "no coverage" beside that benefit 
in the first column. 

(E) Form A shall accompany the outline 
of coverage. 

(F) Statement that the policy does or does 
not cover the following; 

(i) Private duty nursing; 

(ii) Skilled nursing home care costs (be- 
yond what is co\'ered by Medicare); 

(iii) Custodial nursmg home care costs; 

(iv) Intermediate nursing home care 
costs; 

(v) Home health care above number of 
visits covered by Medicare; 

(vi) Physician charges (above Medicare's 
reasonable charges); 

(vii) Drugs (other than prescription drugs 
furnished during a hospital or skilled 
nursing facility stay); 

(viii) Care received outside the U.S.A.; 

(ix) Dental care or dentures, checkups, 
routine immunizations, cosmetic sur- 
ger,', routine foot care, examinations for 
the cost of eyeglasses or hearing aids. 

(G) .\ description of any policy provisions 
which exclude, eliminate, resist, reduce, 
Umit, delay, or in any other manner oper- 
ate to qualif\ payments of the benefits 
described in Paragraph (c)(3) of this Rule, 
including conspicuous statements; 

(i) That the chart summarizing .Medicare 
benefits only briefly describes such 
benefits. 

(iil 1 hat the Health Care Financing Ad- 
ministration or its .Medicare publica- 
tions should be consulted for further 
details and limitations. 



(H) A description of policy provisions re- 
specting renewability or continuation of 
coverage, including any reser\ation of 
rights to change premium. 
(I) The amount of premium for this policy, 
(d) Notice regarding policies or subscriber 
contracts which are not medicare supplement 
policies. -Any accident and health insurance 
policy or subscriber contract, other than a medi- 
care supplement poHcy; or a pohcy issued pur- 
suant to a contract under section 1876 of the 
Federal Social Secunty Act (42 U.S.C. 1395 
et.seq.), disability income policy; basic, cat- 
astrophic, or major medical expense policy; sin- 
ale premium nonrenewable policv or other policv 
Tdentified Title 11 NCAC 12 .0816(2), issued for 
dehvery in this state to persons eligible for Med- 
icare by reason of age shall notify insureds under 
the policy or subscriber contract that the policy 
or subscriber contract is not a Medicare Supple- 
ment Policy. Such notice shall either be printed 
or attached to the first page of the outline of 
coverage delivered to insureds under the pohcy 
or subscnber contract, or if no outhne of cover- 
age is deli\'ered, to the first page of the pohcy, 
certificate or subscriber contract dehvered to in- 
sureds. Such notice shall be in no less than 12 
point type and shall contain the following lan- 
guage; 

"THIS [POLICE', CFRIIFICATE OR SUB- 
SCRIBER CONTR.^UI| IS NOT A MEDICARE 
SUPPLEMENT [POLICY OR CONTR.ACT1. If 
you are ehgible for Medicare, review the Medi- 
care Supplement Buyer's Guide available from 
the company." 

Sldluton,- Authority G.S. 58-2-40: 58-54-25. 

.0825 REQL IREMENTS FOR APPLICATION 
FORMS AND RKPLACFMENT 
CO\FRAGK 

(a) Application forms shall include the follow- 
ing questions designed to eUcit information as to 
whether, as of the date of the application, the 
applicant has another Medicare Supplement in- 
surance policy or certificate m force or whether 
a Medicare Supplement Pohcy or certificate is 
intended to replace any other accident and health 
pohcy or certificate presently in force. .-\ sup- 
plementap. apphcation or other form to be 
signed by the appUcant and agent, except where 
the coverage is sold without an agent, containing 
such questions may be used. 

(1) Do you have another .Medicare Supple- 
ment insurance policy or certificate in 
force (including health care service con- 
tract, health maintenance organization 
contract)? 



537 



5:S NORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



(2) Did you have another Medicare Supple- 
ment policy or certificate in force during 
the last 12 months? 

(A) If so, with which company? 

(B) If that policy lapsed, when did it lapse? 

(3) Are you covered by Medicaid? 

(4) Do you intend to replace any of your 
medical or health insurance coverage with 
this policy |certificate|? 

(b) Agents shall list any other health insurance 
policies they ha\e sold to the applicant. 

( 1 ) List policies sold which are stUJ in force. 

(2) List pohcies sold in the past five years 
which are no longer in force. 

(c) Upon determining that a sale will involve 
replacement, an insurer, other than a direct re- 
sponse insurer or its agent, shall furnish the ap- 
plicant, prior to issuance or delivery of the 
Medicare Supplement Policy or certificate, a no- 
tice regarding replacement of accident and health 
coverage. One copy of such notice signed by the 
apphcant and the agent, except where the cover- 
age is sold without an agent, shall be pro\idcd to 
the apphcant and an additional signed copy shall 
be retained by the insurer. A direct response 
insurer shall deliver to the applicant at the time 
of the issuance of the poUcy the notice regarding 
replacement of accident and sickness coverage. 

(d) The notice required by Paragraph (c) of this 
Rule for an insurer, other than a direct response 
insurer, shall be provided in substantially the 
following form; 

NOTICE TO APPLICANT REGARDING 

REPLACEMENT 

OF MEDICARE SUPPLEMENT INSLR.\NCE 

(Insurance company s name and address) 

SAVE THIS NOTICE! IT MAY BE 
IMPOR IAN 1 TO YOU IN THE EU PURE 

According to |\()ur application) |infonnation you 
have furnished], you intend to lapse or otherwi.se 
terminate existing Medicare Supplement insur- 
ance and replace it with a policy to be issued by 
|company name] Insurance Company. ^'our 
new pohcy provides 30 days within which you 
may decide without cost whether you desire to 
keep the policy. For your own information and 
protection, you should be aware of and seriously 
consider certain factors which may affect the in- 
surance protection available to you and under the 
new pohcy. 

You should review this new coverage carefully, 
comparing it will all accident and sickness cover- 
age you now have, and terminate your present 
pohcy onh if after due consideration. \ou find 



that purchase of this Medicare Supplement cov- 
erage is a wise decision. 

STATEMENT TO APPLICANT BY AGENT 
[BROKER OR OTHER REPRESEN- 
TATIVE]: 

(Use additional sheets, as necessary.) 
I have reviewed your current medical or health 
insurance coverage. I beUeve the replacement of 
insurance involved in this transaction materially 
improves your position. My conclusion has 
taken into account the following considerations, 
which I call to your attention: 

(1) Health conditions which you may pres- 
ently have (preexisting conditions) may 
not be immediately or fully covered under 
the new policy. This could result in de- 
nial or delay of a claim for benefits under 
the new policy, whereas a similar claim 
might have been payable under your 
present pohcy. 

(2) State law provides that your reinstituted 
or replacement policy or certificate may 
not contain new preexisting conditions, 
waiting periods, elimination periods or 
probationary periods. The insurer will 
waive any time periods applicable to pre- 
existing conditions, waiting periods, ehm- 
ination periods, or probationary periods 
in the new policy (or coverage) for similar 
benefits to the extent such timi- was spent 
(depleted) under the original poUcy. 

(3) If you- are replacing existing Medicare 
Supplement insurance coverage, you may 
wish to secure the advice of your present 
insurer or its agent regarding the proposed 
replacement of your present policy. This 
is not only your right, but it is also in your 
best interest to make sure you understand 
all the relevant factors involved in replac- 
ing your present coverage. 

(4) If, after due consideration, you still wish 
to terminate your present pohcy and re- 
place it with new coverage, be certain to 
truthfully and completely answer all 
questions on the apphcation concerning 
your medical health histor\'. Failure to 
include all material medical infonnation 
on an application may provide a basis tor 
the company to deny any future claims 
and to refund your premium as thougli 
your pohcy had never been m force. Alter 
the apphcation has been completed and 
before you sign it, reread it carefull)' to be 
certain that all infonnation has been 
properly recorded. 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



53S 



PROPOSED RULES 



Siffliature of Agent , Broker or Other Represen- 
tative 
iNped Name and Address of Agent or Broker 

The above "Notice to Applicant" was delivered 
to me on: 



(DAIL) 



(Applicant's Signature) 

(c) The notice required by Paragraph (c) of this 
Rule for a direct response shall be as follows: 

NOTICE TO APPLICANT REGARDING 

REPLACEMENT 

or MEDICARE SUPPLEMENT INSUR.ANCE 

(Insurance company's name and address) 

SAVE THIS NOTICE! IT MAY BE 
IMPORTANT TO VOL IN THE FUTURE. 

According to [your apphcation] |information you 
ha\e furnished] you intend to lapse or otherwise 
tcnTunate existing Medicare Supplement insur- 
ance and replace it with the policy delivered 
herewith issued by (company name] Insurance 
Company, ^'our new poUcy provides 30 days 
within which you may decide without cost 
u hcther you desire to keep the poUcy. For your 
own information and protection, you should be 
aware of and seriously consider certain factors 
which may affect the insurance protection avail- 
able to _\ou under the new pohcy. 
"i'ou should rc\iew this new coverage carefully, 
comparing it with all accident and sickness cov- 
erage you now have, and terminate your present 
poUcy only if, after due consideration, you fmd 
that purchase of this Medicare Supplement cov- 
erage is a wise decision. 

( 1 ) Health conditions which you may pres- 
enth have (preexisting conditions) may 
not be immediately or fuUy covered under 
the new pohcy. Ihis could result in de- 
nial or delay of a claim for benefits under 
the new policy, whereas a similar claim 
might have been payable under your 
present pohcy. 

(2) State law provides that your reinstituted 
or replacement pohcy or certificate may 
not contain new preexisting conditions, 
waiting periods, ehmination periods or 
probationary periods, ^'our insurer will 
waive an\' time periods apphcable to pre- 



existing conditions, waiting periods, ehm- 
ination periods, or probationary periods 
in the new policy (or co\erage) for similar 
benefits to the extent such time was spent 
(depleted) under the original pohcy. 

(3) If you are replacing existing Medicare 
Supplement insurance coverage, you may 
wish to secure the advice of your present 
insurer or its agent regarding the proposed 
replacement of your present pohcy. This 
is not only your right, but it is also in your 
best interest to make sure you understand 
all the relevant factors involved in replac- 
ing your present coverage. 

(4) ] To be included only if the application is 
attached to the pohcy. | If, after' due con- 
sideration, you still wish to terminate your 
present pohcy and replace it with new 
coverage, read the copy of the application 
attached to your new pohcy and be sure 
that all questions are answered fully and 
correctly. Omissions or misstatements in 
the apphcation could cause an otherwise 
valid claim to be denied. CarefuUy check 
the apphcation and write to ]Company 
Name and Address] within 30 days il" any 
information is not correct and complete, 
or if any past medical history' has been left 
out of the apphcation. 



(Company Name) 

Statutory Authority G.S. 58-2-40: 5S-54-25. 

.0826 FILING RF.Ql IREMEN TS FOR 
ADVERIISINC. 

Every insurer, hospital or medical service cor- 
poration or health maintenance organization or 
other entity providing Medicare Supplement in- 
surance or benefits in this state shall provide a 
copy of any Medicare Supplement ad\'ertisement 
intended for use in this state whether through 
written, radio or television medium to the Com- 
missioner of Insurance of this State 90 days prior 
to its use for review or approval by the Com- 
missioner as required under state law. 

Statutory Authority G.S. 58-2-40: 58-54-35. 

.0827 STANDARDS FOR MARKFIING 

(a) Every insurer, health care senice plan or 
other entity marketing Medicare Supplement in- 
surance coverage in this state, directly or through 
its producers, shall: 

(1) Estabhsh marketing procedures to assure 
that any comparison of policies by its 



539 



5:S NORTH CAROLL\A REGISTER July 16.1990 



PROPOSED RULES 



agents or other producers will be fair and 
accurate. 

(2) Establish marketing procedures to assure 
excessive insurance is not sold or issued. 

(3) Display prominently by type, stamp or 
other appropriate means, on the fyst page 
of the outline of coverage and policy the 
following: 

"Notice to buyer: This policy may not 
cover all of the costs associated with 
medical care incurred by the buyer during 
the period of coverage. The buyer is ad- 
vised to review carefuUy all policy limita- 
tions." 

(4) Inquire and otherwise make every reason' 
able effort to identify whether a prospec- 
tive applicant or enroUee for Medicare 
Supplement insurance already has acci- 
dent and sickness insurance and the types 
and amounts of any such insurance. 

(5) Every' insurer or entity marketing Medi- 
care Supplement insurance shall establish 
auditablc procedures for verifying compli- 
ance with this Paragraph (a). 

(b) In addition to the practices prohibited in 
Article 63 of Chapter 58 of the North Carolina 
General Statutes, the following acts and practices 
are prohibited: 



(1) 



(2) 



Twisting. Knowingly making any mis- 
leading representation or incomplete or 
fraudulent comparison of any insurance 
policies or insurers for the purpose of in- 
ducing, or tending to induce, any person 
to lapse, forfeit, surrender, terminate, re- 
tain, pledge, assign, borrow on, or con\crt 
any insurance policy or to take out a pol- 
icy of insurance with another insurer. 

High pressure tactics. Employing any 
method of marketing having the effect of 
or tending to induce the purchase of in- 
surance through force, fright, threat 
whether explicit or implied, or undue 
pressure to purchase or recommend the 
purchase of insurance, 
('old lead advertising. Making use directly 
or indirectly of any method of marketing 
which fails to disclose in a conspicuous 
manner that a purpose of the method of 
marketing is solicitation of insurance and 
that contact will be made by an insurance 
agent or insurance company. 



Staluloiy Authority G.S. 5S-2-40. 

.0828 Al'PROPRI VTFNFSS OF 

KFCOMMFNDFI) IM KCIIASF AM) 
EXCESSIN E INSL RANGE 



(3) 



(a) In recommending the purchase or replace- 
ment of any Medicare Supplement policy or cer- 
tificate an agent shall make reasonable efforts to 
determine the appropriateness of a recommended 
purchase or replacement. 

(b) Any sale of Medicare Supplement coverage 
which will provide an individual more than one 
Medicare Supplement policy or certificate is 
prohibited; provided, however, that additional 
Medicare Supplement coverage may be sold if, 
when combined with that indi\iduars health 
coverage already in force, it would insure no 
more than 100 percent of the individual's actual 
medical expenses covered under the combined 
policies. 

Statutory Authority G.S. 5S-2-40. 

.0829 REPORTING OF MLLTIPI.E POLICIES 

(a) On or before March 1, every insurer or 
other entity providing Medicare Supplement in- 
surance coverage in this state shall report the 
following information for e\er\' individual resi- 
dent of this state for which the insurer or entity 
has in force more than one Medicare Supplement 
insurance policy or certificate: 

(1) Policy and certificate numbers, and 

(2) Date of issuance. 

(b) The items set forth in this Rule must be 
grouped by individual policyholder. 

Statutory' Authority G.S. 5S-2-40. 

.0830 PROHIBITIONS IN REPLACEMENT 
POLICIES OR CERLIFICATES 

If a Medicare Supplement policy or certificate 
replaces another Medicare Supplement policy or 
certificate, the replacing insurer shall waive any 
time periods applicable to preexisting conditions, 
waiting periods, elimination periods and 
probationary periods in the new Medicare Sup- 
plement policy for similar benefits to the extent 
such time was spent under the original policy. 

Statutory' Authority G.S. 5S-2-40. 

.0831 MEDICARE SLPPIEMENT ANNUAL 
REPORT 

Each insurer shall report on or before July 1st 
of each year to the Commissioner the follow ing: 

( 1) policy or certificate plan name; 

(2) policy or certificate form number; 

(3) policy or certificate approval date; 

(4) number of insureds; 

(5) plans withdrawn from sale; and 

(6) insurer's address and telephone number. 

Statutoiy Authority G.S. 5S-2-40. 



5.S NORTH C.AROLIN.A REGISTER July 16, 1990 



540 



PROPOSED RULES 



.0832 NOTICE FORMS 

The notice required by 1 1 NCAC 12 .0824(b-)(l) 
shall appear in the foUowing format: 

(1) [-orm A is a notice that describes any 
changes in Medicare coverages for the cur- 
rent and following years and any resulting 
changes in Medicare Supplement coverage. 
This notice must include the name of the 
company issuing the policy as well as the 
agent who sells the Medicare Supplement 
policy. 

(2) All forms described in this Rule may be 
obtained in the I ife, Accident and Health 
Division, North Carolina Department of 
Insurance, 430 N. Sahsburv Street, Raleigh, 
North Carolina 27611, or' by calling (919) 
733-5060. 

Statutory Authority G.S. 5S-2-40: 5S-54-/0; 
5S-54-I5; 58-54-25; 5S-54-35. 

.0833 BENEFIT CON\ KRSION 

REQLTREMENTS 1)1 RING TR.\NSITION 

(a) Effective January 1, 1990, no Medicare 
Supplement insurance policy, contract or certif- 
icate in force in this state shall contain benefits 
which duplicate benefits provided by Medicare. 

(b) Benefits eliminated by operation of the 
Medicare Catastrophic Coverage Act of 1988 
transition provisions shall be restored. 

(c) For .Medicare Supplement policies subject 
to minimum standards adopted by the states 
pursuant to Medicare Catastrophic Coverage Act 
of 1988, the minimum benefits shall be: 

(1) Coverage of Fart A Medicare eligible ex- 
penses for hospitalization to the extent 
not covered by Medicare from the 61st 
day through the 9(lth day in any Medicare 
benefit period; 

(2) Coverage for either all or none of the 
.Medicare Part A inpatient hospital 
deductible amount; 

(3) Coverage of Part A Medicare eligible ex- 
penses incurred as daily hospital charges 
during use of Medicare's lifetime hospital 
inpatient reserve days; 

(4) Upon exhaustion of all Medicare hospital 
inpatient coverage including the lifetime 
reserve days, coverage of 90 percent of all 
Medicare Part A eligible expenses for 
hospitalization not ccnered by Medicare 
subject to a lifetime maximum benefit of 
an additional 365 days; 

(5) Coverage under Medicare Part A for the 
reasonable cost of the first three pints of 
blood (or equivalent quantities of packed 
red blood cells, as defined under federal 



regulations) unless replaced in accordance 
with federal regulations or already paid for 
under Part B; 

(6) Coverage for the coinsurance amount of 
Medicare eligible expenses under Part B 
regardless of hospital confinement, subject 
to a maximum calendar year out-of- 
pocket amount equal to the Medicare Part 
B deductible (seventy-five dollars 
($75.00)]. Included within this provision 
is coverage for the coinsurance amount 
(20 percent) of Medicare eligible expenses 
for covered outpatient drugs used in 
immunosuppressive therapy, subject to 
the .Medicare deductible amount; 

(7) F^ffective January 1, 1990, coverage under 
.Medicare Part B for the reasonable cost 
of the first three pints of blood (or equiv- 
alent quantities of packed red blood cells, 
as defmed under federal regulations), un- 
less replaced in accordance with federal 
regulations or already paid for under Part 
A, subject to the .Medicare deductible 
amount. 

(d) General Requirements. 

(1) No later than January- 31, 1990, every 
insurer, health care service plan or other 
entity providing Medicare Supplement in- 
surance or benefits to a resident of this 
state shaU notify its policyholders, con- 
tract holders and certificate holders of 
modifications it has made to Medicare 
Supplement insurance policies or con- 
tracts. Such notice shall be in a format 
prescribed bv the Commissioner or in the 
format adopted by the NAIC (Form A) 
if no other format is prescribed by the 
Commissioner. 

(A) Such notice shall include a description 
of revisions to the Medicare program and 
a description of each modification made 
to the coverage provided under the Medi- 
care Supplement insurance policy or con- 
tract. 

(B) The notice shall inform each covered 
person as to when any premium adjust- 
ment due to changes in Medicare benefits 
vvUl be effective. 

(C) The notice of benefit modifications and 
anv premium adjustments shall be in 
outline fomi and in clear and simple terms 
so as to facilitate comprehension. 

(D) Such notice shall not contain or be ac- 
comp;mied by any solicitation. 

(2) No modifications to an existing Medicare 
Supplement contract or policy shall be 
made at the time of or in connection with 
the notice requirements of this Regulation 



541 



5:8 NORTH CAROLINA REGISTER July 16,1990 



PROPOSED RULES 



except to the extent necessary to accom- 
plish the purposes of this Regulation. 

(e) As soon as practicable, hut no longer than 
45 days after the effective date of the Medicare 
benefit changes, every insurer, health care ser\'ice 
plan or other entity providing Medicare Supple- 
ment insurance or contracts in this state shall file 
with the Department, in accordance with the ap- 
pbcable filing procedure of this state: 

(1) Appropriate premium adjustments neces- 
sary to produce loss ratios as originally 
anticipated for the applicable policies or 
contracts. Such supporting documents as 
necessary to justify the adjustment shaU 
accompany the filing. 

(2) Any appropriate riders, endorsements or 
policy forms needed to accomplish the 
Medicare Supplement insurance modifi- 
cations necessary' to eliminate benefit du- 
plications with Medicare and to provide 
the benefits required by Paragraphs (a), 
(b) and (c) of this Rule. Any such riders, 
endorsements or policy forms shall pro- 
vide a clear description of the Medicare 
Supplement benefits pnnided by the pol- 
icy or contract. 

(f) Upon satisfying the filing (and appro\al| re- 
quirements of this state, every insurer, health care 
service plan or other entity pro\iding .Medicare 
Supplement insurance in this state shall pro\ide 
each covered person with any rider, endorsement 
or policy form necessar> to make the adjustments 
outlined in Paraiiraphs (a), (b) and (c) of this 
Rule. 

(g) Any premium adjustments shall produce 
an expected loss ratio under such polic> or ctin- 
tract as will conform with minimum loss ratio 
standards for Medicare Supplement policies and 
shall result in an expected loss ratio at least as 
great as that originally anticipated by the insurer, 
health care ser\'ice plan or other entity for such 
Medicare Supplement insurance policies or con- 
tracts. I'remium adjustments may be calculated 
for the period commencing w ith Medicare benefit 
changes. 

SuuuKny Auilwrily G.S. 5S-2-40: 3S-54-/0. 
SKC HON .0900 - I III l/.A HON KKMKW 



1 he North ("arolina Department of Insurance 
conducted a rules hcariim on .hilv 2. lOQO. for 
rules 11 NCAC 12 .0901 Uuougli ',0917. L'tili/a- 
tion Re\iew. as published in \'olume 5. Issue 4 
of the North Carolina Register. Because there 
ha\e been substantial changes to these proposed 
rules, the Department will re|Hiblish and set a 



hearing date for the new proposed rules for 
UtiUzation Review organizations. 

TITLE ISA - DEPARTMENT OF 

ENVIRONMENT, HEALTH, AND 

NATURAL RESOURCES 

ly otice is hereby gh'en in accordance with G.S. 
1 508- 12 that the EHNR - Emironmental Man- 
agement Commission intends to amend nde(s) 
cited as ISA NCAC 2D .0/03, .0501, .0503, .0524 

- .0525, .0530 - .0531, .0536. .090/ - .0902, .09/2 

- .09/3, .0925 - .0926. .0928 - .0930, .0933. .0943; 
2H .0601, .0607; and 2J .0002 - .0003. 

1 lie proposed effective date of this action is 
./anuaty /, /99/. ' 



Th 



he public hearing will be conducted at 2:00 
p.m. on .August /7, /990 at Ground Floor Hearing 
Room. .Irchdale Building, 5/2 Xorth Salisbuty 
St.. Raleigh. .\C. 



Co 



omment Procedures: .411 persons interested in 
these matters are imiled to attend t/ie public 
hearing. .-Iny person desiring to comment for 
more than three minutes is requested to submit a 
written statement for inclusion in the record of 
proceedings at the public hearing, /'lie hearing 
officer may limit oral presentation lengths if many 
people want to .speak. The record of proceedings 
will remain open for 30 days following the hearing 
to recei\c additional written staiemeiUs. I'o be 
included, t/ie statement must be received by t/ic 
Department within 30 days after the /learing date. 

.Additional iitformation concerning the hearing or 
the proposals may be obtained by contacting: 

Mr. Thomas C. .Alien 

Division of T.tivironmental .\/ana<;cment 

P. O. Bo.x 2^687 

Raleigh, Xorth Carolina 2'^6/ /-76S7 

(9/9) 733-3340 

( IIM'IFR 2 - KN\ IKONMIMAI. 
MAN \(;IMIM 

SI lU IIAI'IKK 2n - AIR I'OI I I HON 
COMKOI Kl Ql IRIMKMS 

SKCl ION .0100 - DIMM IION.S AM) 
KKI I UI.\( KS 

.0103 COriF-S Ol- RKI KRENCED FEDFRAI 
RF(U I ATIONS 

(a) Copies of applicable Code of leiieral Reg- 
ulations sections ivfeiivd to in this Subclia|iter 



5:8 NORTH CAROLIN.i REGISTER July 16,1990 



.542 



PROPOSED RULES 



arc available for public inspection at Department 
of Natural RL'! . ourc e ! . t*ft4 Community D t^ s e kip 



allowable emission limit has previously been set. 
When a fuel bumina indirect heat exchaneer has 



m e nt I rn ironment, Health, and Natural Re- been removed, it shall no longer be considered in 



sources regional otflces. Ihey are: 

( 1 ) Asheville Regional Office, Interchange 
Building, 59 Woodfm Place. Strwt, i^ 
©ffi^ ft^ 2ai^ Asheville, North Carolina 

Statutoty Authority G.S. I50B-I4. 

SKCI ION .0500 - KMISSION CONTROL 
ST.\NDARI)S 

.0501 COMPLI.VNCE WITH EMISSION 
CONTROL STAND.VRDS 

(d) .-Vll existing sources of emission shall com- 
pl\- with applicable regulations and standards at 
the earliest possible date. Aii source"; ' i\\a\\ h^ tft 
compliLincu ' ■ viihin throL * ycur ' j from t^ apprusal 
»f t+t^ L . tato li unpk'mL'ntation plan by At* ft ' dc ' ral 
gCL ' niment unloflo » lalcT 4*t# t* ?«^ » t4+t» Rc'g 
ulation. All new sources shaU be in compliance 
prior to beginning operations. 



Statutoty Authority 
l43-2l5.l0''iau5l.' 



G.S. l43-2l5.3(a}(l): 



.0503 P.VRTICCLATES F ROM FLEL BL RNING 
INDIRECT HEAT EXCIl.VNGERS 

(c) For the purpose of this Regulation, the 
maximum heat input shall be the total heat con- 
tent of all fuels, excludmg wood and refuse not 
burned as a fuel, wliich are burned in a fuel 
burning indirect heat exchanger and whose pro- 
ducts of combustion pass through a stack or 
stacks. However, for residential facilities or in- 
stitutions (such as militar\' and educational) 
whose primaPv' fuel burning capacity is for com- 
fort heat, only those fuel burning indirect heat 
exchangers located in the same power plant or 
building or otherwise physically interconnected 
(such as common flues, steam, or power distrib- 
ution line) shall be used to detennine the total 
heat input. I'he total maximum heat input, ex- 
cluding heat input from the combustion of wood 
and refuse not burned as a fuel, of all fuel burning 
indirect heat exchangers at a plant site in opera- 
tion, under construction, or with a permit shall 
be used to determine the allowable emission limit 
of a fuel burning indirect heat exchanger. Fuel 
burning indirect heat exchangers constnicted or 
pennitted after February 1, 1983. shall not 
change the allowable emission limit of any fuel 
burning indirect heat exchanger whose allowable 
emission limit has pre\ iously been set. Ihe re- 
mo\al of a fuel burning indirect heat cxchanuer 
shall not chaiiize the allowable emission limit of 
an\ fuel burning; indirect heat exchanger whose 



the determination of the allowable emission limit 
of any fuel burning indirect heat e.xchanger con- 
structed after or in conjunction with the removal. 



Statutory Authority 
l43-2I5.l07(a)(5). 



G.S. l43-2l5.3(a)(l); 



.0524 NEWSOLRCE PERFORM.ANCE 
STANDARDS 

(a) Sources of the follow ing types when subject 
to new source performance standards 
promulgated in 40 CFR Part 60 shall comply 
with the emission standards, monitoring and re- 
porting requirements, maintenance recjuirements, 
notification and record keeping requirements, 
peribrmance test requirements, test method and 
procedure provisions, and any other pro\isions, 
as required therein, rather than with any 
otherwise-applicable regulatio,n in this .Section or 
Section .09(10 of this Subchapter which would be 
in conflict therewith: 

(61) \olatile organic compound emissions 
from petroleum refmePi" wastewater svs- 
tems (40 CFR 60.1 to 60.39 and 40 CFR 
60.690 to 60.699. Subpart QQQ); 

(62) poKmeric coating of supporting 
substrates facilities (40 CFR 60.1 to 60.3^ 
and 40 CFR M).l'4() to W!A'i. Subpart 
VVV). 

Statutorx- Authority G.S. 143-2/5.3 (a) (I): 
143-215.107 (a) {5 1. 

.0525 NAI lONAI EMISSION STANDARDS 
FOR HA/ARDOI S AIR I'OLLl I ANTS 

(a) Sources emitting pollutants of the following 
t_\pes when subject to national emission stand- 
ards for hazardous air pollutants promulgated in 
40 CFR I'art 61 shall comply with emission 
standards, monitoring and reporting require- 
ments, maintenance requirements, notification 
and record keeping requirements, pertimnancc 
test requirements, test method and procedure 
provisions, and any other pro\ isions. as required 
therein, rather than with any otherwise- 
applicable regulation in this Section or Section 
.0900 of this Subchapter which would be in con- 
tlict therewith: 

(10) inorganic arsenic emissions from arsenic 
tnoxide and metallic arsenic production 
facihties (40 CFR 61.01 to 61.19 and 
61.180 to 61.1S9. Subpart P): 

(11) benzene emissions from coke b\ -pnxluct 
rcco\-cr\- plallt^ (4U CFR 61.01 to (^ 1 . 1 
and 61.130 to M.13^). Subpart I ): 



543 



5:S NORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



(12) benzene emissions from benzene storage 
vessels (40 CI R hi. 01 to 61.1^ to 61.270. 
Subpart Y). 
(bj All requests, reports, applications, submit- 
tals, and other communications to the adminis- 
trator required under Paragraph (a) of this 
Regulation shall be submitted to the Environ- 
mental Management Commission rather than to 
the Environmental Protection Agency; except 
that all such reports, applications, submittals, 
and other communicatitms to the administrator 
required bv 40 CJ-R 61.145. 61.14h. and 61.147. 
shall be submitted to the Director, Division of 
I:pidemiologv. 

Statutory Authority 
143-215. 107(a)(5). 



G.S. l43-2l5.3(a)(l); 



.0530 PRFAEMiON OF SIGNIFICANT 
nFTFRIORAIION 

(g) Pur -. uant k* 150B 1 1(c) te includo am- krtt»f 
amL'ndmL'nto, Major stationary' sources and ma- 
jor modifications shall comply with the require- 
ments contained in 40 CER 51.166(i) and by 
extension in 40 CER 51.166(j) through (o). The 
transition pro\isions allowed by 40 CER 52.21 
(i)(ll)(i) and (ii) and (m)(l)(vii) and (viii) are 
hereby adopted under this Regulation. The 
minimum requirements described in the portions 
of 40 CI'R 51.166 referenced in this Paragraph 
are hereby adopted as the requirements to be 
used under this Regulation, except as otherwise 
provided in this Regulation. \\'here\er the lan- 
guage of the portions of 40 Cf-R 51.166 refer- 
enced in this Paragraph speaks of the "plan," the 
requirements described therein shall apply to the 
source to which the\' pertain, except as otherwise 
provided in this Regulation. \\'hene\er the 
portions of 40 CER 51.166 referenced in this 
Paragraph pro\ide that the state plan may ex- 
empt or not appl\' certain requirements in certain 
circumstances, those exemptions and pro\isions 
of nonapplicabilit\ are also hereby adopted under 
this Regulation. However, this provision shall 
not be interpreted so as to limit information that 
may be requested from the owner or operator by 
the Director as specified in 40 CER 51, 166(n)(2). 

Statuton- .AuihoritY G.S. 143-21 5.3(aj( I }; 
143-215. 107(a)(3):' 143-2/5. /07(a)(5 ); 

143-215.107 (al (7 1: /43-2/5.niHi b). 

.0531 SOI K{ FS IN NON.M I .MNMFN 1 AKF.VS 

(c) This Regulation is not applicable to: 
(5) emission of the following volatile organic 
compounds: 
(.\) methane. 
(B) ethane. 



(C) trichlorofiuoromethane (chlorofluoro- 
carbon 11), 

(D) dichJorodifluoromethane (chloro- 
fluorocarbon 12), 

(E) chlorodifluoromethane (chlorofluoro- 
carbon 22), 

(E) trifluoromethane (fluorocarbon 23), 
(G) trichJorotrifluoroethane (chloro- 

fluorocarbon 113), 
(II) dichlorotetrafluoroethane (chloro- 

fluorocarbon 1 14), 
(I) chloropentatluoroethane (chlorofluoro- 

carbon 115), 
(J) 1,1,1-trichloroethane (meth\l chloro- 
form), aft4 
(K) dichloromethane (methylene chloride), 
(E) dichlorotrifiuoroethane (h\drochloro- 

tluorocarbon 123), 
(M) tetrafiuoroethane (h\drofluorocarbon 

134a). 
(N) dichloroiluoroethane (h\drochloro- 

fiuorocarbon 141b). and 
(O) chlorodiHuonx-thane (h\drochloro- 

fluorocarbon 142b). 

Statutory .Authority G.S. 143-21 5.3{a) { I } ; 
143-215. 107(a)(5):' 143-215. IOS(b}. 

.0536 PARTK I LAIF FMISSIONS FROM 
FI.FCTRIC I [ lU FY BOM FRS 

(b) Notwithstanding Regulation .0503 of this 
Section, emissions of particulate matter from the 
utility boiler units specified in the following table 
shall not exceed the ma.ximum emission rate in 
the table as measured by a stack test conducted 
in accordance with Regulation .1)501 of this Sec- 
tion. The results of an\ stack test shall be re- 
ported within 30 days, and the test report shall 
be submitted within 60 days after the test. In 
addition to limitations contained in Regulation 
.0521 of this Section, visible emissions from the 
utility boiler units specified in the table shall not 
exceed the annual a\erage opacit\' limits in the 
table. Each day an annual a\erage opacity \alue 
shall be calculated for each unit for the most re- 
cent 365-day period ending w ilh the end oi the 
pre\'ious day. The a\erage is the sum of the 
measured non-overlapping six-minute a\'erages 
of opacity determined onh' while the unit is in 
operation divided b\' the number of such meas- 
ured non-overlapping six-minute a\erages. 
Start-up, shut-down, and non-operating time 
shall not be included in the annual a\'crage 
opacity calculation, but malfunction time shall 
be included. Regulation .0535 of this Section 
notwithstanding. The Director may appro\"e an 
alternate method of calculating the annual a\cr- 
age opacity if: 



5;,V NORTH CAROLINA REGISTER July 16,1990 



544 



PROPOSED RILES 



(1) 



(2| 



(3) 



the altL-mate method is submitted b>' the 
electric utility company, 
the Director concludes that the alternate 
method will not cause a systematic or 
unacceptable difference in calculated val- 
ues from the specified method, and 
it is mutually agreed that the values cal- 
culated using the alternate method can be 
used for enforcement purposes. 
The ou ner or operator of each unit shall submit 
a report to the director by the 3(Jth day following 
the end of each month. This report shall show 
for each day of the previous month the calculated 
annual average opacity of each unit and the an- 
nual a\erage opacit\ limit. If a \iolation occurs, 
the owner or operator of the unit shall imme- 
diateh notif\' the Director. 



Facility 



Boiler 
Unit 



Cape Fear 



Lee 



Roxboro 



Sutton 



^^'eatherspoon 



Duke Power Compan\' 
.Allen 



Maximum 
Emission Rate 
(lb Million BTU 
of Heat Input i 



.Annual 
A\erage 
Opacity 

Limit 
(Percent) 



Beleu s Creek 



Buck 



Cliffside 



Dan River 



Marshall 



Riwrbcnd 



6 
7 
8 
9 

1 

-) 

3 
4 
5 



0.25 
0.25 
0.25 
0.25 
0.25 



Carolina Poucr & Lidit Companv 
Asheville 



0.15 


0.15 


0.15 


0.15 


0.15 


0.15 


0.15 


0.25 


0.25 


(1.25 


0.25 


0.25 


0.15 


(1.15 


0.25 


0.20 


0.20 


0.18 


O.IS 



20 
20 
13 
14 
17 

17 

17 

10 
10 
6 
8 

10 

8 
12 
s 
8 
16 

7 
9 

20 

20 
20 
20 
20 



545 



5:S \ORTH CAROLI.XA REGISTER July 16, 1990 



PROPOSED RULES 



0.12 
0.12 
0.12 
0.12 

a.jan.12 
e^aoj2 

0.20 
0.20 

0.25 
0.13 
0.25 

0.25 
0.16 
0.10 

a.uo.11 

0^30 11.11 
0.11 



0.14 
0.14 
0^0^0.15 



17 
15 



11 
15 

15 
20 
25 

14 
14 
20 



10 

23 



Statutory Authority G.S. l43-2l5.3(a)( I ): 
143-215. I0^(a}(5). 

SECTION .0900 - VOLATILE OKG.VMC 
COMPOUNDS 

.0901 DEFINITIONS 

For the puq-)ose of this Section, the following 
definitions apply: 
(28) "Volatile organic compound" (also de- 
noted as VOC) means any compound of 
carbon whose volatile content can be deter- 
mined by the procedure described in Regu- 
lation .0913 or .0939 of this Section 
excluding: 

(a) carbon monoxide, 

(b) carbon dioxide, 

(c) carbonic acid, 

(d) metallic carbides or carbonates, 

(e) ammonium carbonate, 

(f) methane, 

(g) ethane. 

(h) trichlorolluoromethane (chlorofluoro- 

carbon 1 !), 
(i) dichlorodifluoromcthane (chlorofluoro- 

carbon 12), 
(jl chlorodifluoromethane (chlorofluorocar- 

bon 22), 
(k) trifluoromcthanc (tluorocarbon 23), 



(1) trichlorotrifluoroethane (chlorofluorocar- 

bon 113), 
(m) dichlorotetrafluoroethane (chlorofluoro- 

carbon 1 14), 
(n) chloropentafluoroethane (chlorofluoro- 

carbon 115), 
(o) 1,1,1-trichIorethane (methyl chloroform), 

(p) dichloromethane (methylene chloride), 
(q) dichlorotrifluoroethane (hydrochloro- 

fluorocarbon 123), 
(r) tetrafluoroethane ( hydro fluorocarbon 

I34al, 
(s) dichlorofluoroethane (hydrochloro- 

fluorocarbon 141b), and 
(t) chloroditluoroethane (h\ lirochloro- 

fluorocarbon 142b). 

Statutory Authority G.S. l43-2I5.3(a)( I ). 

.0902 APPLICABILITY 

fe^ ?4*e foUowing Vr4U »»* fe># conL . iderod >ola 
kle organic compoundf . : 
(-1-^ methano, 
f3-)' e than e , 
(4f trichlorofluoromothanj (chloronuoro 

carbon 44-)t 
(44 dichlurodifluoromuthano (chlorofluoro 

carbon 4^ 
f4f chlorodifluoromethane (chlorolluoro 

carbon ii^ 
(4)- trinuoromethano (fluorocarbon i^ 
(^ trichlorotrifluoroethim e (chlorofluoro 

carbon 113). 
(-8^ dichlorot e trafluoro e than e (chlorofluoro 

carbon I M), a«4 
(^ chlorop e ntafluoro e than e (chlorofluoro 

carbon 1 15), 
fW} 1.1,1 trichlorethanc (methsl chloroform), 

f+4-)- dicliloromt. ' thano (mcthyleno chlorid e ). 
(c) f4+ Sources whose emissicms of volatile or- 
ganic compounds are not subject to limitation 
under this Section may still be subject to emis- 
sion limits on \olatile organic compounds in 
Regulation .0518, .0524, or .0525 of this Sub- 
chapter. 

Statutory Authority G.S. l43-215.3i a li 1 1: 
143-215. 107(a)(5).' 

.0912 GENERAL PRO\ LSIONS ON TEST 
MEIIIODS AND I'ROCEDl RES 

(a) The owner or operator of any volatile or- 
ganic compound source required to comply with 
regulations in this Section shall, at his own 
expense. demonstrate compliance by the methods 
descnbed in Regulations .0912 through .0916 and 



5:8 NORTH CAROLINA REGISTER Julv 16, 1990 



546 



PROPOSED RULES 



.0939 through .0942 of this Section. t*f a«- alter 
native m e thod approvod b^ $4*t> dirootor. No 
owner or operator, however, shall be required to 
demonstrate compliance with regulations in this 
Section unless the director requests such demon- 
stration. The director shall explain to the owner 
or operator the basis for requesting a demon- 
stration of compliance and shall allow reasonable 
time for testing to be performed. .\11 tests shall 
be made by, or under the direction of, a person 
qualified by training and or experience in the 
field of air pollution testing, 

StatutofT Authority G.S. 143-21 5.3{a)( I ): 
143-215. WfaliS).' 

.0913 DETERMIN.\TION OF VOL.VTILE 

COMENT OF SI RFACE COATINGS 

(a) In accordance with Regulation .0912 of this 
Section, the volatile matter content, water con- 
tent, density, volume of solids and weight of sol- 
ids of surface coatings shaU be de.termincd by the 
procedures set forth in Method 24 of Appendix 
A of 40 CFR Part 60. Compounds exempted 
under Paragraph i^ ef Regulation 4iOfti QS] of 
Regulation .0901 of this Section shall be treated 
as water. The results of the tests shall be ex- 
pressed in the same units as the emission limits 
given in the regulation for which compliance is 
heina determined. 



Statittofj Authority 
143-215. KTiajiSj.' 



G.S. 143-2/5.3^ al{/j; 



.0925 PETROLEIM LIQUID STORAGE IN 
FIXED ROOF TANKS 

(d) With the exceptions stated in Paragraph (c) 
of this Regulation, the owner or operator of any 
fixed roof storage vessel subject to this Regu- 
lation shall not use the storage vessel unless: 
(1) The storage \essel has been retrofitted w ith 
(A^ an internal floating roof equipped with 
a closure seal, or seals, to close the space 
between the roof edge and tank wall: ef 
fft^ »«■ L'qually jffi^ ' cti' i l ' altL ' rnali' i l> control, 
appros'od liv tbe Director: 



StatutoiT Authority 
143-215. I0^(a){5).' 



G.S. 143-215.3(a)(l); 



.0926 Bll K GASOLINE PLANTS 

(g) \'apor balance systems required under Par- 
agraphs (d) and (e) of tliis Regulation shall con- 
sist of the following major components: 

(1) a \apor space connection on the stationar>' 
storage tank equipped with fittings which 
are vapor tiglit and will be immediately 



closed upon disconnection so as to pre- 
vent release of organic material: c*ft4 

(2) a connecting pipe or hose equipped with 
fittings which are vapor tight and will be 
immediately closed upon disconnection so 
as to prevent release of organic material: 
and 

(3) a vapor space connection on the tank 
truck or trailer equipped with fittings 
which are vapor tight and will be imme- 
diately closed upon disconnection so as to 
prevent release of organic matenal. »f 

f4^ a oy. ' tom d e mo n ' .U rat t'd t» hav e control e4- 
ficiency oqui' i alont k* Bf grout or than pro 
v44e4 under Subparagraph -. (g)n ) through 
(g)(3) »f A+ti Paragraph «+4 app'ro' . ed h^ 
tfee Dir e ctor. 



Statutory .-luthority 
l43-2l5.IO^(a)i5).' 



.0928 



G.S. J43-2/5.3iaj(/j: 



GASOLINE SERMCE STATIONS 
STAGE I 

(e) Tlie vapor control s\'stem required by Par- 
agraph (d) of this Regulation shall include one 
or more of the following: 

(1) a \"apor-tight line from the storage tank to 
the deUver) vessel and a system which will 
ensure the vapor line is connected before 
gasoline can be transferred into the tank: 
or 

(2) a refrigeration-condensation s>stem or 
equisalent designed to recover at least 90 
percent by weight of the organic com- 
pounds in the displaced vapor. Bf 

fr^ a i . V ' tum demcn '. trat e d to ha' .e control ef- 
ficioncy equi' i client k+ t*f great e r thi.in pro 
' i ided under Subparagraph (44 t*f (-=-^ t4 
tbi-T Paragraph i±ft4 approved hy f4+e -Di- 
rector. 

StatiitotT Authority G.S. 143-21 5.3( a) ( I); 
143-21 5.10^ (an 5).' 

.0929 PETROLELM REFINER^ SOL KCES 

(d) The emission limit required b\ Paragraph 
(c) of this Regulation shall be achie\ed b\': 

(1) piping the noncondensable \'apors to a 
firebox or incinerator: or 

(2) compressing the \'apors and adding them 
to the refinery fuel gas. t*f 

(4+ » control '. y -. tem. demoiv . trated k* have 
control elficiency e < .|ui' i itl e nt k+ tH^ greater 
than Subparagraph (-4-4 t+f Q^ t4' 44?- ftw^ 
a graph rt«4 uppro' . ed by t4+e Diioctor, 



Statutory Authority 
143-215. 107{a){5j.' 



G.S. l43-2l5.3ia)(l t: 



547 



5:S NORTH CAROLiy.A REGISTER July 16,1990 



PROPOSED RULES 



.0930 SOLVENT METAL CLEAMNG 

(e) With the exception stated in Paragraph (c) 
of the Regulation, the owner or operator of an 
open top \apor degreaser shall: 

(3) install one of the following control de- 
vices: 

(A) freeboard ratio greater than or equal to 
0.75. If the degreaser opening is greater 
than 10.8 square feet, the cover must be 
powered; 

( B ) refrigerated chiller; 

(C) enclosed design (The cover or door 
opens only when the dry- part is actually 
entering or exiting the degreaser.); or 

(D) carbon adsorption system, with venti- 
lation greater than or equal to 50 cubic 
feet per minute per square foot of 
air/vapor area (when cover is open), and 
exhausting less than 25 parts per million 
of solvent a\eraged over one complete 
adsorption cycle; e+ 

fS-^ a control i i y j. t e m, dL ' moni i tralod te ha' i e 
control e ffici t' ncy oquivalont te e* groator 
than rtft¥ lir . t e d ift Purto fA+ through (-f^ 
Bf tht^ Subparagraph. »ft4 appro' ie d ^ 
(+H» Director; 

(f) With the exception stated in F'aragraph (c) 
of this Regulation, the owner or operator of a 
conveyorized degreaser shall: 

(2) install one of the following control de- 
vices: 

(A) refrigerated chiller; or 

(B) carbon adsorption system, with venti- 
lation greater than or equal to 50 cubic 
feet per minute per square foot of 
air/vapor area (when downtime co%'ers are 
open), and exhausting less than 25 parts 
per million of soh'cnt by volume averaged 
over a complete adsorption cycle; Bf 

fG) » i . yr . tiim. domonr i tratud te- have a con 
t«4 uiricicncy e quiscik'nt te- »f gr e ater than 
Parto (-A-^ »f fB4 ef t4*» Subparagraph, aft4 
appro' i ed by A* Director; 



Statutoiy Aiithorily 
143-215. 107(a)(5). 



G.S. l43-2l5.3(a){l); 



.09.^.3 I'El ROLKLM LIQLIO STORAGE IN 
E.XTERNAL FLOATING ROOF TANKS 

(f) Notwithstanding the defmition of volatile 
organic compound found in Regulation 
.00( l l(.12) Regulation .0Q0U2S) of this Section, 
the ov\ncr or operator of a petroleum hquid 
storage vessel with an external floating roof not 
equipped with a secondary seal or approved al- 
ternative, that contains a petroleum liquid with 
a true vapor pressure greater than 1.0 pounds per 



square inch shall maintain records of the average 
monthly storage temperature, the type of liquid, 
throughput quantities, and the maximum true 
vapor pressure for aU petroleum liquids with a 
true vapor pressure greater than 1.0 pounds per 
square inch. 

Statutory Authoritv G.S. l43-215.3(a)( I ); 
143-215. 107(a)(5). 

.0943 SYNTHETIC ORG.VNIC CHEMICAL 
AND POLYMER M.VNL FACTLRING 

(a) For the purposes of this Regulation, the 
following defmitions apply: 

(8) "Process unit" means equipment assem- 
bled to produce, as intenncdiates or fmal 
products, polyethylene, polypropylene, 
polystyrene, or one or more of the chem- 
icals hsted in Appendix 6 &f 40 CFR JPai4 
60 as ef October -H V^iSA. 40 CFR 60.489. 
A process unit can operate independently 
if supplied with sufficient feed or raw ma- 
terials and sufficient storage facLLities for 
the fmal product. 
(10) "Synthetic organic chemical manufactur- 
ing" means the industry that produces, as 
intermediates or fmal products, one or 
more of the chemicals hsted in iVppendix 
& ef 40 GP^r Part 60 as &f October +t 
\mAr 40 CFR 60.489. 

Statutoiy Authoritv G.S. 143-21 5.3(a)( I ): 
143-215. I07(a)(5j.' 

SLBCHAPTER 2n - PROCEDLRES FOR 
PERMITS: .APPROVALS 

SECTION .0600 - AIR QLALH \ PERMITS 

.0601 PURPOSE AND SCOPE 

(a) The following sources or activities are not 
Ukely to contravene any apphcable ambient air 
quality or emission control standard, and there- 
fore, are not rcc^uired to obtain a permit: 

(6) maintenance or repair e* replacement of 
existing equipment that does not result in 
an increase to the emission of air 
poUutants; 

(7) replacement of existing equipment with 
Uke equipment of same size, t\pe. and 
function that docs not result in an increase 
to the emission of air pollutants and that 
is described bv the current permit, includ- 
ing the application, except for character- 
istics that could not affect pollution 
control, for example, serial numbers; 

(8) >rh smudge pots for orchards or small 
outdoor heating devices to prevent freez- 
mg of plants; 



5:8 NORTH CAR0LIN.4 REGISTER July 16, 1990 



54S 



PROPOSED RULES 



(9) f&^ fuel burning equipment firing exclu- 
sively gaseous fuel with the total heat in- 
put rating of 250 million IVFU per hour 
or less; 

( 10) f% fuel burning equipment firing exclu- 
si\ely No. 1 or No. 2 fuel oil with the total 
heat input rating of 100 million BTL' per 
hour or less; 

(11) f44^ fuel burning equipment firing a mix- 
ture, of gaseous fuel, No. 1 fuel oil or No. 
2 fuel oil, in any proportion, with the total 
heat input rating of 100 million BTL' per 
hour or less. 

(e) An\- exemption allowed bv Paragraph (a) 
or [b] o[ this Rule does not apph' to sources 
subject to l.v\ NC.\(.' 2D .0524. ■052.\ or .05.^0. 
1 he owner or operator o^ these sources shall ob- 
tain a permit before beginning construction or 
operation. 



Stalutofy Aiii/ioritv G.S. 
143-2 1 5. lOS: 143-215. 109. 



l43-2l5.3(aj(I): 



.0607 COl'IKS OK RKFKKKNCF.D DOCLMKNTS 

(a) Copies of applicable Code of Federal Reg- 
ulations sections referred to in this Section and 
the North Carolina State Implementation Plan 
for Air Quality appendix of conditioned permits 
are available for public inspection at Department 
of Ndtunil RL' i' OurcL' '. i+R4 Community D e solop 
nu ' nt I n\ ircmment. 1 lealth, and Natural Re- 
sources region;!] offices. I'hey are: 

(1) Ashe\"ille Regional Office. Interchange 
Building, 59 Woodtin Strfot. \k^ Oftic ^ 
■Rh* tWUt Place, Ashe\'illc, North Carolina 
2S;S02: 2NS01; 



Siaiutofj .liahoriiy G.S. I SOB- 14. 

SI IK IIAI'IKK 2.1 - ( l\ IL PKWLUKS 

.0002 DKIIMIIONS 

The tenns used herein shall be as defined in 
(i.S. 143-213, G.S. 143-215.77. and as follows: 
(3) "Director" means the Director, Di\ision of 
l'n\ironmental .Management; except with 
rcizard to dam safetv \•i(^lation.^. it shall mean 
the Director. Division of 1 and Resources; 
and with rciiard to Molations ol dil C 1 R 
61.1^). M-145. 61.l4h. and 61.147 as ad(^pted 
at L\\ NC.XC 2D .()52.^(a)(l ). it shall mean 
the Director of t_he Dnisjon oH 
{•pidcmioloLiN : provided that the definitions 
of £1 CI R 61.01. 61.03. and 61.141 shall 
apph to these Sections. 

Slalutorv .iuthoritv G.S. 143-21 5.3{ a I ( I ): 
143-213(18): 143-2'/ 2i 6 1: 143-214.2. 



.0003 WHO M.W ASSKSS 

Civil penalties may be assessed by the Com- 
mission or by the Director, except for dam safety 
violations, which civil penalties may be assessed 
by the Commission or by the Director, Division 
of Land Resources, and except for \iolations of 
asbestos demolition and renovation requirements 
of 40 CF R 61.145, 61.146, and 61.147, and the 
circumvention prohibition of 40 C 1 R 61.19 as it 
may relate thereto, as ad(^pted in 1 5.\ NC.\(' 2D 
.0525(a)( 1 ), which civil penalties may be assessed 
bv the (,ximmission or bv the Director, Division 
of Hpidemiologv . 

Slalutorv Aulhoritv G.S. 8^-94: 143-2/5.3 (a) 
l4>: /43-2/5.6 (a); 143-2/5. /7 (b); /43-2/5.36 
ib); /43-2I5.91 (a): /43-2/5.//4 laj. 



No 



oticc is hereby gh-en in accordance \vil/i G.S. 
150B-12 I fiat t/xe EH\R - Emironmenta/ .Man- 
agement Comtnission intends to amend ndeisl 
cited as /5A .\CAC 2D ./002. ./004. and ./005. 



n 



/le proposed effective dale of ifii'; action is .Iprif 
1. /99/. 



Tf: 



fie pubtic fiearing wi/f be conducted at 2:00 
p.m. on .-lugust /7. /990 at Ground F/oor ffeari/ig 
Room. Arc/idale Budding, 5/2 Sort/i Satisl?urv 
St., Rafeigfi. .\C. 



c 



omment Procedures: .iff persons interested in 
tfiese /natters are imited to attend tfie pubtic 
fiearing. .{ny person desiring to comment for 
more tfian tfiree minutes is requested to submit a 
written statement for incfusion in t/ie record of 
proceedings at t/ie pubtic fiearing. I'fie fiearing 
officer may limit orat presentation tengtfis if many 
peopte want to speafi. Tfie record of proceedings 
witi remain open for 30 days fottowing tfie fiearing 
to receh-e additional written statements. To be 
inctuded. l/ie statement must be received by t/ie 
Department witfiin 30 days after tfie fiearing date. 

.Idditionaf in/'ormalion concerning tfie fiearing or 

tfie proposals tnav be obtained t)y contacting: 

.\tr. Tfiomas C. .Itten 

Division of timironmentat Management 

P. Box 2^(>s:' 

Raleigh. Sorth Carolina 2^6/ / -"(18^ 

('9/9; 733-3340 

( IIAPIFR 2 - I N\ IRONMKA T VI. 
M.VN.K(,KMtM 



549 



5:,S NORTH CAROLINA REGISTER Julv 16,1990 



PROPOSED RULES 



SL BCHAPIKR 2D - AIR POI.LLTION 
CONTROL REQLIRKMKN TS 

SECTION .1000 - MOTOR VEHICLE EMISSION 
CONTROL STANDARD 

.1002 APPLICABILITY 

Ftxcopt fof motoroycloo a«4 motor " I 'ohicloo 
Nshich »fe oldor Aaft 44 mod e l y e ars, e xcluding 
tth* curront modul year, rtU gasoline pow e red 

by- tke l^ivif . ion ef Motor Vuhiclo aft4 which are 
baiiod i« Mouldonburg County af)4 Wake County 
afe subj e ct to A«» regulations ef this Section. 

(a) This Section is applicable to all 1^75 and 
later gasoline-powered motor vehicles, except 
motorcycles and cxcludint; the current model 
year, that are required to b£ redstered by the 
North Carolina Division of Motor Vehicles in 
the counties listed in I'arairraph (b) of this Rule. 

(b) The emission standards will become effec- 



tive in t]ie following; counties on the dates indi- 
cated: 



County 



Mecklenburg 
Wake 
I'orsMh 
Cjuilford 



FffectiNe Date 



April 1. iqoi 

Apnl 1. l^'Jl 

July L 2221 
July 1, IWl 



Statutory Authohtv G.S. 20-128.2 (a): 143-215.3 
(a) (I): 143-215.107 (a) (3): 143-2/5. 107 (a) 
(6): 143-215.107 (a) (7). 

.1004 EMISSION STANDARDS 

(a) The following standards specify the maxi- 
mum carbon monoxide (CO) and h\dr(Karbon 
(llC) concentrations permitted to be exhausted 
from motor \ehicles subject to these Regulations: 



Vu'hicle Class 



1 iuht duts' Vehicle 



H e avy duls \' e hicle 



Model "N e ar 

Carbon .Monoxide 

Standard 

A* Wle (IVrcenl) 

1Q75 1077 44 

HK I -in,! 1..I.... I ~i 



Vehicle Class 



light-duty Vehicle 



IleavT-dutv Vehicle 



CO Standard 
At idle ( Percent) 

±1 
hi 
10 
\2 

XO 
4.0 



|i ) 75 107S U^ 
imn ..»,! 1. ..,..■ 1 n 



Model Year 



1975-1977 
1978-1979 

1980 
1981 and later 

1975-1978 
1979 and later 

nC Standard 
At Idle (IM'M) 

450 - 
350 
250 
220 



500 
400 



(b) Exceptions or variances to the standards ef 
subdisision in Para'japh (a) of this Regulation, 
other than those specified in Regulation .1002 of 
this Section, are permitted only in accordance 
with the provisions of the Emissions Test proce- 
dures Section of the "Safety, Emissions, 
Windshield Procedures Manual" as set forth b>- 
the North Carolina Division of Motor Vehicles. 

Statuton' .Authority G.S. 20-/2S.2 (a); 143-2/5.3 
(a) (/)': /43-2/5./07 (a) (3); /43-2/5./07 (a) 
(6): /43-2/5./07 (a) (7). 

.1005 MEASI RKMENT AND ENKOR( EMEN I 

1 he methods and equipment for measuring the 
carbon monoxide exhaust emissions are specified 
in Ae "Safety, I'mis j.i ons. Wiiul j iliield Procedurer . 
Manual" Appendix G of the North Carolina 
State Implementation Plan for Air Qualit\ as set 
forth by the North Carolina Division of Motor 
Vehicl e s. Envirt^nmental Management. i he 
methods for enforcing the standards of this Sec- 
tion are contained in the "Safety, {'missions. 
Windshield Procedures .Manual" as set forth b\- 
the North Carolina Division of Motor Vehicles. 
The documents adopted by reference m this Sec- 
tion shall automat icalK include an\' later amend- 
ments thereto as allowed b^ (i S. l5lllM4(c). 

Statutor^■ .-lut/writy G.S. 20-/2M.2 (ai: /43-2/5.3 
(a) (/)': /43-2/5./07 (a) (3); /43-2/5./07 (a) 
(6); /43-2I5./07 (a) (7): /50B-/4(cJ. 



S.-a NORTH CAROLINA REGISTER July 16, 1990 



550 



PROPOSED RILES 



■k-k-f;-k-k-k-k-k*-k-k-k±-k*-k-ki: 



i\ otice is hereby ghcn in accordance with G.S. 
/30B-I2 [hat the EHSR (Wastewater Treatment 
Plant Operators Certification Commission) in- 
tends to amend rule(s) cited as ISA SCAC SA 
.0101 - .0/02. .0202: SB .0/08 - .0/09, .020/ - 
.0205, .0302 - .0303. .0404 - .0405; 8C .0002, 
.0004: SD .0004 - .0006. 

/i. fiscal note has been issued and a copy is 
available from t/ie agency. 

I he proposed e/fecti\'e date of this action is De- 
cember /. /990. 

1 he public hearing will be conducted at / :00 
p.m. on .August 27, /990 at Ground Eloor Hearing 
Room, .irchdale Building, 5/2 .V. Salisbury St., 
Raleigh. SC 2'^6//. 

C omment Procedures: .-ill persons interested in 
this matter are invited to attend. Comments, 
statements, data, and ot/ier information may be 
submitted in writing prior to, during, or within 
thirty (30 ! days after ilxe hearing or may be pre- 
sented orally at t/ie hearing. Oral statements may 
be limited at the discretion of the hearing officer. 
Submittal of written copies of oral statements is 
encouraged. For more information please contact 
Dennis Ramsey. Division of Environmental Man- 
agement. P.O. Box 27557, Raleigh, A'C 2^6//. 
(9/9) 733-5033. 

ClI APIt R 8 - \vri> OI'KKATORS 
CFRTIFICATION COMMISSION 

St BCHAI'IKR SA - Al THOKITV: 

ORGAM/AIION: STRl Cll RK: OKI IMTIONS 

AND IIFARING PROCEDL RES 

SECTION .0100 - DEFINITIONS AND 
ORGANIZATION 



(c) ''Contract Operation F irm ' is any com- 
mercial wastewater treatment operation firm as 
descnbed in G.S. 90A-45a. 

(d) "Operator in Responsible Charge" is the 
operator designated to fulfill the requirements of 
G.S. 90.\-44. fe ordor to qualify a* opt'rator m 
rgL ' poni ' iblo chiirgo »f * particular ' ■ vaLto' i vatc ' r 
tr e atm e nt facility, aft op^ ' rator: 

(4f muot pof . oosr i &fti* »f tfe* ccrtificatL": . lir . t e d 
i» GrSr 90A K l »f a grade ' at- tea^ equi' . - 
ak'nt to f+w clai ^' ufication t*f tJw facility. 

f3f muot tx* ih<^ op e rator ' . vho » actually h* 
charg e ef Ae daily operation aft4 mainte 
nanc e b( tfe^ facility a«4 who r e sid e-' 
' ■ ' i ithin ^ minute ', tra' i e l lime t-4-' (-he t'acil 
i+y^ aft4 j* readily ui i aLlablL ' ff*f con i ailtalicm 
*(• the facility «• exe^e »+' a» emergency, 
malfunction, e* breakdo ^ vn e4 e quipm e nt 
t*f fof other nocdf. aft4 

(4+ Fftav b^ a» employee t4 a Contract Opor 
ation rirm -to Umg a~ t¥n- employee meetf . 
att requirem e nts ift M4 rtfhi (-3-^ ift tht^ 

(e) "Owner" is that person, firm, or corpo- 
ration descnbed in G.S. 90A— 14. 

(fl "Permanent Certificate" is that certificate 
of competence and experience issued by the Cer- 
tification Commission to an indi%idual as the re- 
sult of passing an examination administered by 
the Certification Commission or issued by the 
Certification Commission h\ reciprocity. It is 
subject to the provisions of G.S. 9l).-\-4i)a. 

(2) "Reciprocity Certificate" is that certification 
allowed under G.'S. 90A-4i)b. 

(hi "lemporarN' Certificate" is that certificate 
issued to an indix'idual by the Certification 
Commission when the conditions of G.S. 
90A-40e are met. 

(i) "Wastewater Treatment Facilit}." is an\ fa- 
cility classified under the pro\isions of G.S. 
90A-37. 

Statuton- Authority G.S. 90A-37: 90.-i-3S: 
90A-40:' 90A-44; 90'A-45: /43B-300: /50B-2i4). 



.0101 DEFINITIONS 

(a) "Certification Commission" is the 

\\'astewater Treatment Plant Operators Certif- 
ication Commission created by G.S. 143B-3U0. 

(bl "Conditional Certificate" is a permanent 
certificate issued by the Certification Commis- 
sion to an individual as the result of passing an 
examination administered by the Certification 
Commission and which is \'aHd only for a speci- 
fied type and grade of wastewater treatment fa- 
cility. It is -ubject to the pro\isions of G.S. 
90.A-4Ua. 



.0102 CREATION 

The Wastewater Treatment Plant Operators 
Certification Commi>->ion. Department of -^vi- 
tural Reoourceo »«4 Community Developm e nt. 
I"n\ironment. 1 lealth. and Natural Resources is 
located at 512 N. Salisbur*' Street, .\rchdale 
Building. P.O. Box 276S7. Raleigh. North 
Carolina 27611. was created and became effec- 
tive July L 1969. 

SiaiutoiT .Authority G.S. I43B-300. 



551 



5:S \ORTH CAROLEXA REGISTER July 16, 1990 



PROPOSED RULES 



SECTION .0200 - CKNF.RAL PLKPOSE: DUTIES 
AM) REQLIREMENTS: AND PROGRAMS 

.0202 DUTIES AND REQUIREMENTS 

(c) Requirements for Ccrttfied Operators 

(2) Owners are required to provide a certified 
back-up operator to fulfiU the duties of 
the Operator in Responsible Charge 
(ORG) set forth in Paragaph (c)(4)(B) of 
this Rule when the ORG is unavailable 
due to illness, vacation, or job related ab- 
sence and to inform the Gertification 
Gommission in writing when: 

(A) an individual formerly designated as the 
Operator in Responsible Gharge is no 
longer performing these duties; or 

(B) a Contract Operation Firm formerly 
designated to be responsible for operation 
and maintenance is no longer pertbnning 
these duties. 

(3) A Contract Operation Firm is required to 
inform the Gertification Commission in 
writing within 30 davs when: 

(A| an indixidual formerly designated as the 
Operator in Responsible Charge is no 
longer pertbmiing these duties; or 
(B) a Contract Operation Firm formerly 
designated to be responsible for operation 
and maintenance is no longer pertbnning 
these duties. 
This letter shall indicate the date of the 
change in the status of the Operator in Re- 
sponsible Charge or the Contract Operation 
Firm and the name of the new designee or 
Contract Operation Firm as required in 8A 
.0202(d)(2). 

(4) In order to qualify as operator in respon- 
sible charge of a particular wastewater 
treatment facility, an operator: 

(A) must possess one of the certificates 
listed in G.S. ^J0,\-40 of a grade at least 



equivalent to the 
cilitv; 



classification of the fa- 



(B) must be responsible for and \isit each 
facility at_ least daily, excluding weekends 
and holida\s. properly manage and docu- 
ment dailv (^''eration and maintenance. 
certit\' monittinng and reporting informa- 
tion as prcscnbed in the Permit, reside 
within reasonable proximity ot^^ the facility, 
to be readiK a\ailable Rir consultation, 



emergencies. 



regulator\ 



agencN' 



in- 



speclions and similar matters; 
(G) ma\ be an employee of a Cc^ntract 
Operation Firm so long as this empknee 
meets all requirements in Paragraphs 
(c)(4)(A) and (Jil of this Rule: 



(D) may be designated to serve as ORG for 
more than one classified facility provided 
that the total number of points as deter- 
mined by the following table does not ex- 
ceed 100. 



Class IV 
Class III 
Class II 
Glass I 



Facility 
Facility 
Facility 
Facility 



80 points 
60 points 
20 points 
10 points 



Statutory Authority G.S. 90A-37 through 90A-43; 
I43B-300. 

SUBCHAPTER 8B - CERTIFICATION OF 
OPERATORS 

SECTION .0100 - AI'PUICATION FOR 
EXAMINATION AND CERTIFICATION: AND 
NOTIFICATION OF CHANGE IN ADDRESS 

.0108 ADDRESS FOR REQUESTING AND 
RETURNING APPUIC.ATIONS 

Applications are obtainable from and should be 
returned to: Chairman, Wastewater Freatment 
Plant Operators Gertification Commission, De- 
partment of Natural R e r . ourco '. afi4 Community 
D e sL ' lopmont, F'nvironment. Health, and Natural 
Resources, P.O. Box 27687, Raleigh, North 
Carolina 27611. 



Statutoty Authority G.S. 
1438-300. 



90A-39; 90A-42; 



.0109 REQl IREMENT FOR NOTU IC.\TION 
OF CII.VNGE IN ADDRESS 

Holders of certificates under this program shall 
notify the Gh;dnnan, Wastewater Treatment 
Plant Operators Certification Commission, De- 
partment of Natural Rc '. ourcoL f tm4 Community 
DL^ i olopmcnt, Fn\ironment. Health, and Natural 
Resources, P.O. Box 27687, Raleigli, North 



at least Carolina 27611, of any change in address. 



Statutory 
I43B-300. 



Authority G.S. 90A-35: 90A-43; 



SECnON .0200 - EDUCATION AND 

EXPERIENC E FOR CERFIFIED WAS FEW A FER 

TREAFMEN I PUANl OPFRAFORS 

.0201 GRADE I WASTEWATER 1 REATMENT 
PUANT OPFR.VI OR 

/Vn applicant for a grade I certificate (lowest) 
shall be expected to have a general knowledge of 
the operation of small treatment plants. The 
applicant shall have knowledge of equipment 
usually cmploNcd in such plants, and be able to 
describe the general maintenance requirements 
tor such plant units. I he apphcant must submit 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



.?.?. 



PROPOSED RULES 



an application showing that one of the following 
prerequisite combinations of training and experi- 
ence has been met in order to take the grade I 
examination: 

(1) three years of acceptable experience in 
wastewater treatment plant operation; 

(2) completion of eighth grade of school and 
two years of acceptable experience in 
wastewater treatment plant operation; 

(3) efH* satisfacton,' completic^n of a (jrade I 
approved traimng school for wastewater 
treatment plant operators and one sear of 
acceptable experience in wastewater treat- 
ment plant operation: 

(4) graduate of a high school, or equi\'alent 
GHD. and three months of acceptable expe- 
rience in wastewater treatment plant opera- 
tion; 

(5) graduate of a high school or equi\;dent 
Gl'D or a tuo or four sear college and 
completion of approved tniining school. 

Provided, hcnveser. that if an applicant fails the 
Cirade 1 examination after three attempts, the 
applicant must then satisfactonh complete a 
Ciradc 1 approved Irainini; school before lakina 
the Ciradc I examination aiiain. 

Staiuioty Auilunity G.S. QOA-3'): 143B-300. 

.0202 CKADK II \V AS IKW A I KK IKK ATMKN T 
n AM OI'KK ATtlK 

(at ,\n applicant for a grade II certificate shall 
be expected to have a general knowledge of the 
various types of wastewater treatment plants and 
the processes involved: a general knowledge of 
the compositittn of wastewater and the proper 
sampling thereof; a general knowledge of the 
procedure involved in making basic physical and 
chemical tests and their application to treatment 
plant control; the abilitv to make simple calcu- 
lations: general knowledge ol the proper mainte- 
nance of the various treatment phuit units and 
the mechanical equipment involved; to keep and 
interpret records; practice safety and maintain 
good public relations; and such other infonna- 
tion as niav be deemed pertinent bv the 
Wastewater Ireatment Plant Operators Certif- 
ication Commission. 

(b) The applicant must submit an application 

showing that one of the following prerequisite 

combiiKitions oi training and expenence has been 

met in order to take the grade II examination: 

( I ) t+Hrk sglisfacton completion o\_ a Grade ]_!_ 

approved training school for wastewater 

treatment plant operators and two years 

of acceptable experience in a North 

Carolina class I. or equivalent, wastewater 

trcitment plant or higher; 



(2) a North Carolina grade I certificate, or 
equivalent, and one vear of acceptable 
operator experience in a North Carolina 
class I, or equivalent, wastewater treat- 
ment plant or higher; 

(3) graduate of high school, or equivalent 
GED, and six months of acceptable ex- 
perience in a North Carolina class I, or 
equiv;dent, wastewater treatment plant or 
higher; 

(4) graduate of a recognized two-\car college 
or technical school or coUege or university 
;md six months of acceptable experience 
in wastewater treatment operation. 

Provided, however, that if an applican t fails the 
(jrade IJ_ examination alter tliree attempts, the 
applicant must then satisfactonlv complete a 
Grade I_[ approved training school belbrc taking 
the Cjrade ]_[ examination aLiain. 

Stamion- Authoriiy G.S. 90A-J9; /4JB-J00. 

.0203 (iKADK III WASTKW AIKR IKKAIMFM" 
IMAM OI'F.RA rOR 

(a) An applicant for a grade III certificate shall 
be expected to kiunv be more knowlediiable. and 
to have the ability to answer more highlv spe- 
cialized questions relative to wastewater treat- 
ment and plant operation than t^ that required 
tor on applicant for a grade II certificate. In ad- 
dition to the requirements mentioned for a grade 
II certificate, a candidate for a grade III ceiiificate 
should have a greater knowledge of the pliv sical. 
chemical and bactenological tests ordinanlv per- 
formed in an adequatcK equipped laboratory for 
the detennination of the nature, t\pe and con- 
centration of various wastewaters. The .ipplicant 
should be able to peribnn more advanced calcu- 
lations including velocity oi' fiow and pressures 
in pipes, etc.. and should have a detailed know- 
ledge of the principles of treatment plant opera- 
tion, eiriciencies, corrosion and its prevention, 
and the proper maintenance of all items oi 
equipment in a wastewater treatment plant. The 
applicant should be famih.ir with various tvpes 
oi pumps commonh used in wastew.iter treat- 
ment plants, their advantages and disadvant.iges. 
and be able to calculate pump etricicncies. Ihe 
applicant should know o( the problems createtl 
by industnal wastes, their effect on the sewers, 
treatment pkmt, and receiving stream. Ihe .ip- 
plicant should be able to measure. b\ various 
means, the flow of wastewaters, to properlv make 
composite samples, and to run the necessarv 
physical, chemical and bactenological tests nec- 
essary to provide the required degree of treatment 
pnor to discluu'ge into the rccciv ing water. 



.i.>.^ 



5.<V .\ORTH CAROLli\.4 REGISTER July 16.1990 



PROPOSED RULES 



(b) The applicant must submit an application 
showing that the applicant possesses an acti\'e 
North Carolina grade II certificate or oquisulont 
possess an active certificate at the highest grade 
in an\' other state and that one of the following 
prerequisite combinations of training and experi- 
ence has been met in order to take the grade III 
examination; 

(1) four years of acceptable experience in a 
North Carolina class II, or equivalent, 
wastewater treatment plant or higher; 

(2) graduate of high school, or equivalent 
GED, and three years of acceptable expe- 
rience in a North Carolina class II, or 
equivalent, wastewater treatment plant 
or higher; 

(3) two years of college or associate degree 
with academic preparation in chemistrs", 
biology, public health, or related fields, 
and two years of acceptable experience in 
a North Carolina class II. or equivalent, 
wastewater treatment plant or higher; 

(4) graduate of a recognized two year college 
or technical school, with an associate de- 
gree in en\ironmental sciences, and 18 
months of acceptable experience in a 
North Carolina class II, or equi\alent, 
wastewater treatment plant or higher; 

(5) graduate of a recognized college or uni- 
versity with a major in natural or physical 
sciences, engineering or related field, and 
one year of acceptable experience in a 
North Carolina class II or equivalent 
wastewater treatment plant or higher? 

Pro\ided. howe\er. that \i_ an applicant fails the 
(jrade 111 examination alter three attempts, the 
applicant must then satistactonh complete a 
(jrade 111 appro\ed training school betore taking 
the Cirade 111 examinati(.')n again. 

Stanaoiy Aiuhority G.S. 90A-39: I43B-300. 

.0204 (,KADK l\ W AS lEW.A TER IKEA TMENT 
PLANT OI»ERAI OR 

(a) ,\n applicant for a grade IV certificate 
(highest) shall be expected to have more specific 
knowledge covering the entire field of wastewater 
treatment than the applicant for a grade III cer- 
tificate. The applicant should ha\e more ad- 
vanced know ledge of the design and construction 
of wastewater treatment facilities as v\cll as more 
advanced knowledge of the chemistrv and biol- 
ogv' in\'ol\ed in the various processes of 
wastewater treatment. The applicant should be 
familiar with %arious mdustrial wastes and know 
how to measure flow, sample and run the com- 
mon physical, cheniical and bacteriological tests 
ncccssaPv' to provide the proper pretreatment or 



treatment thereof. The applicant should have a 
good knowledge of the proper operation and 
maintenance of the various units in a modem 
wastewater treatment plant including pumps, 
motors, and electrical equipment. The applicant 
should be famihar with new developments in the 
field of wastewater treatment and should have a 
good knowledge of the laws and regulations re- 
lating to stream sanitation. I he applicant should 
be able to develop necessary records and prepare 
required reports, etc. The applicant should be 
able to properly supervise other employees and 
place into practice good public relations and 
safety programs, etc. 

(b) The applicant must submit an application 
showing that the applicant possesses ;in active 
North Carolina grade III certificate or uqui' . alont 
possess an acti\e certificate at_ the highest grade 
in anv other state and that one of the following 
prerequisite combinations of training and experi- 
ence has been met in order to take the grade IV 
examination; 

(1) fi\e years of acceptable experience in a 
North Carolina class III. or equi\alent, 
wastewater treatment plant or higher; 

(2) graduate of high school, or equivalent 
GED, and four years of acceptable expe- 
rience in a North Carolina class III, or 
equi\alent wastewater treatment plant or 
higher; 

(3) two years of college or associate degree 
with academic preparation in chemistry, 
bacteriology, public health, or related 
fields and three years of acceptable expe- 
rience in a North Carolina class III, or 
equi\alent, wastewater treatment plant or 
higher; 

(4) graduate of a recognized two year college 
or technical school, with an associate de- 
gree in en\'ironmental sciences, and 30 
months of acceptable experience in a 
North Carohna class III, or eqiusalcnt, 
wastewater treatment plant or higlier; 

(5) graduate of a recognized college or uni- 
versity with a major in natural or physical 
sciences, engineering, or related field, and 
two years of acceptable experience in a 
North Carolina class III, or equi\alent, 
wastewater treatment plant or higher. 

Provided, however, that if an applicant fails the 
Grade IV examination after three attempts, the 
applicant must then satisfaclorih complete a 
(jrade IV approved training schtiol be I ore taking 
the (}rade IV examination again. 

Statuion Auihohty G.S. 90A-39; J43B-300. 

.0205 DEFIMTIONS 



5:S NORTH CAROLINA REGISTER July 16, 1990 



554 



PROPOSED RULES 



(a) Acceptable experience shall mean the total 
time spent in wastewater treatment plant opera- 
tion and related fields of which at least 50 percent 
must be actual operating expenence in a 
wastewater treatment plant. 

(b) Satisfactory- completion of an approved 
training school shall mean attendance of at least 
80 percent of the total hours of instruction of a 
non-degree technical course approved by the 
Wastewater Treatment Plant Operators Certif- 
ication Commission. 

(c) Recognized two year college or technical 
school shall mean an accredited two year institu- 
tion awarding degrees on the associate level. 

(d) Recognized coUege or university shall mean 
an accredited four-year institution awarding de- 
grees on the bachelors level. 

Slatulon' Authority G.S. 90A-39; I43B-300. 

SFXTION .0300 - CERTIFICATION BY 
EXAMIN.VTION 

.0302 CONDLCTING AND GRADING 
EX.\MINATIONS 

(a) Examinations, prepared by members of the 
commission or its authorized representatives and 
appro\cd by the commission, wiU be given only 
to those who, after tiling proper application, have 
been determined to be eligible. Examinations 
will be conducted and graded under the super- 
vision of a representative of the commission, or 
its authorized representatives. Assistance in 
conducting :md grading the examinations may 
be sought from members of the division of envi- 
ronmental management, and other appropriate 
persons with the approval of the commission. 
Fixaminations wiU be prenumbercd; therefore, 
examinee's paper wiU be identified by number 
rather than by name. When each examinee re- 
ceives his examination paper, he wiU identify 
himself by way of his dnvers license or other 
form of identification satisfactory to the proctor, 
and the identification number will be recorded 
on the face of the examination paper. 

(b) Representatives of the Commission, or 
other authorized representatives, who are super- 
\ising the examinations may lake appropriate 
action against applicants, including dismissal 
from the examination. i_n order to assure that 
cheating does not occur. If the applicant holds 
a certiticatc alread\'. the Commission ma\' revoke 
the ccrtihcation in accordance with NCGS 
')().\-41 and 1 .\\ NCAC SD .0004, fir cheating 
on an examination. 



Statutoij Authority 
1438-300. 



G.S. 90A-39: 93B-S: 



.0303 EXAMINATION RESULTS AND 
ISSUANCE OF CERTIFICATES 

(a) Within as short a period as feasible, after 
an examination, the examinee will be informed, 
in writing only, by the commission or its au- 
thorized representatives as to the results of his 
examination. If a passing score is made, such 
notification constitutes certification by the com- 
mission that the applicant is a qualified operator 
in the appropriate grade. After each examina- 
tion, a list of those certified shall be drawn up 
and made a part of the permanent records of the 
commission. Copies of these lists wiU be pro- 
vided each commission member. Upon com- 
pletion of the lettering, the qualifying- applicant 
will be issued a certificate designating his level of 
competency. 

(b) Under normal circumstances, neither the 
examination grade nor the examination paper of 
any applicant will be made available to anyone 
other than the members of the commission and 
those approved persons who assist in conducting 
and grading the examinations. The examination 
papers will be held for a period of six months 
following notification to the examinee. 
Questions by the applicant concerning the ex- 
amination must be made in writing to the com- 
mission within that period. An applicant who 
fails to pass an examination shall be entitled to 
and notified of the privilege to review his exam- 
ination in the presence of one or more commis- 
sion members or its authorized representati\e in 
the Raleigh office, or upon request, at a regional 
office of the Department of Natural Rc ^ ourcL ' s 
aft4 Community D e ' i L ' lopmcnt, rn\ironment, 
Health, and Natural Resources or other appro- 
priate place. 

(c) In order to assure active certification, an 
annual renewal fee wiU be required as specitied 
in G.S. 90A-42. 

Statutory Authority G.S. 90A-39; 90A-40; 
90A-42:93B-3: 93B-8: 1 43 B- 300. 

SECnON .0400 - CERIIFK AIION WITHOUT 
KXAMINAIION 

.0404 TEMPORARY CERTIFICATION 

(d) Temporary certificates are valid for one year 
from the date of issuance at the place of em- 
ployment tor which thc> are issued. 

( e ) A tomporiiPf ceilificalc may (Mily br* ft?- 
quo ' jtL'd fof "tomporaP i " tMlualioni . rmd- vrtil be 
Umitud te t+«* original Bf^ yeaf ef i ' j ' juance p4«s 
»fte vtHtf additional ren e wal period fof t+«t» indi 
' l idual. A temporar\- certificate or certificates will 
be valid at any mdividual wastewater treatment 
plant for no more than tliree conL . ecuti' . L' contin- 



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5:S NORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



uous years from the original date of issuance un- 
less extreme extenuating circumstances are 
shown. 

Statutory Authority G.S. 00A-40(e): J 43 B- 300. 

.0405 TEMPORARY CERTIFICATION 
RENEWAL 

(a) Temporan,' certification renewal must be 
requested 60 days prior to the expiration date of 
a temporary certificate. The request must be 
made by application and accompanied by ap- 
propriate fee and a letter or statement prepared 
by the owner setting forth attempts made by the 
operator to become permanently certified by ex- 
amination during the temporary certification pe- 
riod and a documentation of the efforts by the 
owner to secure a permanently certified operator, 
and any other information requested by the 
commission relative to the owner's inability to 
retain a permanently certified operator. 

(b) -Xb- tempo rury cortitioation r e n t^ wal f i hull be 
ir .j' U e d '4 A«» opL'rator lacks ihe capacity to be- 
comc L ' ligiblo fof examination fof pormanont 
certification a* Ae requir e d grad e ' ■ ' l ithin &fte yewf 
»f renewal application date. The Temporan' 
(Certification Renewal shall be \alid for one \ear 
from the date of expiration of the initial Tempo- 
rarv (rertificate. 

(c) The renewal request will be considered for 
approval by the certification commission and 
upon appro\al, a certificate will be issued with 
the understanding that the commission wiU not 
issue a second temporary certificate renewal to 
the same indi\idual. 

Statutoty Authority G.S. 90A-40(e): I43B-300. 

SUBCHAPTER 8C - CLASSIFIC.\TION OF 
WASTEWAIER TRE.VIMENT FACILIIIES 

.0002 RAIING SCALE FOR CLASSIFICATION 
OF FACIEI riES 

(a) In-plant processes and related control 
equipment which are an integral part of industrial 
production shall not be considered waste treat- 
ment for the purpose of this Section. Likewise, 
discharges of wastewater from residences having 
a design flow of 1,000 gpd or less, shall not be 
subject to the provisions of this Section. 

(b) The following scale is used for rating 
wastewater treatment facilities: 

irhM POINTS 

( 1 ) Industrial Pretrcatmcnt Units and or 
Industrial Pretrcatmcnt Program 

see definition No. 33| Xer ^A^ 2 4 

(2) DESIGN FLOW OF PLA.NT IN gpd 



[not applicable to non-contaminated 
cooling waters, aft4 non diuoharging sys- 
tem*) sludge handling facilities for water 
purification plants, totally closed cycle 
systems (def No. 1 1), and facilities con- 
sisting only of Subparagraph (4|(D) or 
Subparagraphs (4)(D) and (1 r)(P)| 

0- 20,000 1 

20,001- 50,000 2 

50,001 - 100,000 3 

100,001 - 250,000 4 

250,001 - 500,000 5 

500,001 - 1,000,000 8 

1,000,001 - 2,000,000 10 

2,000,001 (and up) - rate 1 point addi- 
tional for each 200,000 gpd 
capacity up to a maximum 

of ' 30 

Design Flow (gpd): 

(3) PRELIMINARY UNITS (see definition 

f»^ Influent Pumpf i (including aw 

(A) (^ Bar Screens 1 

or 

(B) fe) Mechanical Screens, Static Screens 
or Comminuting De\'iccs 2 

(C) (4f Grit Removal 1 

or 

(D) fei Mechanical or Aerated Grit 
Removal 2 

(E) ff) Flow .Measuring Device 1 

or 

(F') fg) Instrumented Flow 

Measurement 2 

(G) {h^ Preaeration ef EqualL/.ation 4- 5 

(II) Influent r\o\v Fquali/ation 2 

(I) (+) Grease or Oil Separators -- 

Gravity 2 

Mechanical 3 

Aerated & 

Dissohed Air 

Flotation 8 

ff) Chemical Conditioning ^ 

(J) Prechlorination 5 

(4) PRIMARY' I REATMENT UNITS 

(A) Septic Tank (see definition fter 44) No. 
43i : 2 

(B) ImhoffTank .i 5 

(C) Primary Clarifiers (including i . ludg e atf 
Mte) 5 

(D) Settling Ponds or Settling Tanks for 
Inorganic Non-toxic Materials Invol' i ing 
a Dii' . charg e k> Ae Surface Water -, (sludge 
handling facilities for water purification 
plants, sand, gra\el, stone, and other 



5:<S NORTH CAROLINA REGISTER July 16, 1990 



556 



PROPOSED RULES 



mining operations except recreational ac- 
tivities such as gem or gold 

mininiz) -W 2 

(5) SECONDARY TREATMENT UNITS 

(A) Carbonaceous Stage 

(i) Aeration - High Purity Oxygen 

System '. '.....20 

Diffused .Air System 10 

Mechanical Air System 
(fixed, floating or 

rotor) 8 

Separate Sludge 

Reaeration 3 

(ii) Tnckling Filter - High Rate.. 7 

Standard Rate 5 

Packed lower 5 

(iii) Biological /Xerated Filter or Aerated 

Dioloiiical t-ilter W 

(iv) f+i*+ .\erated Lagoons 10 

( \- ) fi-H Rotating Biological Contractors 

(biodi '. c) Contactors 10 

(\i) fv-^ Sand Filters - intermittent 

biological 2 

recirculating 

biological 3 

(\ii) fvt^ Stabilization Lagoons 5 

(viii) fv4i^ Claril'ier (including oludgo aif 

l**4^ 5 

(ix) Single stage svstem for combined 
carbonaceous remo\al of BOD and 
nitrogenous remosal bv nitrification 
(See def. No. 12) [Points for this Para- 
graph have to be in addition to Sub- 
paragraphs (5)(A)(i) through 

(5)(,\)(viii)| S 

(x) Nutnent additions to enhance BOD 

removal 5 

(xi) i^iological Culture (''Super Bugs") 
addition to enhance organic compound 
remo\al 5 

(B) Nitrogenous Stage 

(i) Aeration - High Purity Oxygen 

Svstem 20 

Diffused .\ir System 10 

Mechanical .^Vir System 
(fixed, floating, or 

rotor) 8 

Separate Sludge 
Reaeration 3 

(ii) Tncklmg Filter - High Rate 7 

Standard Rate 3 

Packed Tower '5 

(iii) Biological .Aerated Filter or Aerated 
Biological Filter U) 

(i\') (-t+H Rotating iiiological Contructoro 
(biodi '. c) Contactors 10 

(\') h^i Sand Filter - intennittent 

biological 2 



recirculating 

bioK^gical 3 

(vi) fv^ Clanfier (including r . ludgt * ai* 

(6) TERTIARY OR ADVANCED 

TREATMENT UNITS 

(A) Activated Carbon Beds - 

without carbon 

regeneration 5 

with carbon 
regeneration 15 

(B) Powdered or Granular Activated Car- 
bon Feed - 

without carbon 

regeneration 5 

with carbon 
regeneration 15 

(C) Ammonia Air Stripping 4-8 5 

(4^ Chemical iVdditionc . ^ 

(D) fe^ Denitrification Process (separate 
process) 10 

(E) (4> Electrodialysis 5 

(_E2 fs^ Foam Separation 5 

((}) ^ Ion Exchange 5 

(H) (++ Land Application of Treated Ff'fiucnt 
(see definition ft»T 23b) No. 22b) 
f«t*t- applicable' fe* facilitiei i undijr 

-Wf*f| ^ 

(not applicable for sand. gra\'el . stone and 

other similar mining operations) 

(i) on agncullurallv managed sites (See 

def. No. 42 UJ 

(ii) bv high rate infiltration on non- 
agriculturallv managed sites (includes 
rotar\' distnbutors and similar fixed 

nozzle s\ stems) 4 

(iii) bv subsurface disposal (includes low- 
pressure pipe svstems and gra\it\ s\s- 
tems except at plants consisting of sep- 
tic tank and nitnficaticm lines 

onlv) 4 

(I) (-)-} .Microscreens 5 

(J) f4r4 Phosphorus Removal bv Bic^logical 

Processes (See def. No. 26) 20 

(K) (4f Polishing Ponds - 

without aeration 2 

with aeration 5 

(L) (f»^ Post Aeration - cascade 

diffused or 

mechanical 5 

(-H-f Pre PackajL ' Unit ft*f Removal »f Q41- 

»ft4 (irea ^.tf ^ 

(M) (-b4 Reverse Osmosis 5 

(N) ffH Sand or Mi.xed-. Media Filters — 

low rate 2 

high rate 5 

(O) Treatment processes for removal of 
metal or c\anide 15 



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5:S NORTH CAROLINA REGISTER July 16,1990 



PROPOSED RULES 



(P) Treatment processes for removal of 
toxic materials other than metal or 
cyanide J_5 

(7) SLUDGE TREATMENT 

(A) Sludge Digestion Tank -- 

Heated 10 

Aerobic 5 

Unhealed 3 

(B) Sludge Stabilization (chemical or ther- 
mal) W5 

(C) Sludge Drying Beds - 

Gravity 2 

Vacuum Assisted 5 

(D) Sludge Elutriation 5 

(E) Sludge Conditioner (chemical or 
thermal) 5 

(F) Sludge Thickener (gravity) 5 3 

(G) Dissoh'cd Air Flotation Unit 
[not applicable to a unit rated as 

Qlllil 8 

(H) fgf Sludge Gas Utilization (including gas 
storage) 2 

(I) (4*> Sludge Holding Tank - 

Aerated 5 

Non-aerated 2 

(J) (+^ Sludge Incinerator (not including ac- 
tivated carbon regeneration) 10 

(K) fj^ Vacuum Filter, Centrifuge or Filter 
Press 1...10 

(8) SLUDGE DISPOSAL (mcluding 
incinerated ash) 

(A) Lagoons 2 

(B) Land Application (surface and subsur- 
face) (see definition 3^a4 22a) 10 

(C) Landfilled (burial) 5 

(9) DISINFECTION 

(A) -Pw Chlormation 5 4- 

fb-)- Inlonnodiuto i 

ttii. Pn-I X 

\ T- 7 1 1. 1 ,P I ^ 

(B) (4^ Dechlorination 5 

( C ) fef Chlorine »* Ozone 
GonL'ration 5 

(D) fff Radiation i 5 

(10) CHEMICAL ADDITION SYSTF\I(S) 

( Sec dctinition No. 2| 
|not applicable to chemical additions in- 
\oKed in Subparagraphs (3)(.l). 
(5)(A)(xi). (6)(A). (6)(B). (7)(B). (7)(F). 
(9)(A). (9)(B). or ('))(C)| 

5 points each: 1 ist: 5 

5 

5 

5 

(40+ MISCELLANEOUS UNITS 
fdi Holding Pondf . ef Holding lanky , fs* 
Inorganic. Non toxic Mnterialr . i . ' . ith fte- 
Didchargo t*» t4» Surfcici! Waters .. 5 



(Sludgo handling faoilitios f»f water {»«- 
rificution plant ' s sand, gra' . x ' l , crushed 
stone aft4 other similar operations — see 
definition b^t W^ 

(A) (fe) Holding Ponds, ef Holding Tanks 
or Settling Ponds for Organic or Toxic 
Materials witk ae Discharge te tlw Sw^ 

foee Waters 4 

(Any pump, ^^alv e , ef other mechanical 
control subject te failure cr e ating a pe- 
tential fof bypass »f discharg e from A<» 
holding ponds ef tanks wi44- neces '. itate a 
minimum classilioation ef class t requiring 
a certifi e d op e rator.) 

including wastes from mining operations 
/ containing nitrogen and or phosphorus 
compounds in amounts signihcantly 
greater than is common for domestic 
wastewater 4 

(Bl (^ Holding Pw*4 fef Effluent Flow 
EquaUzation and or Stag e Discharge (not 
applicable to storage basins which are part 
of land application s\stems) 2 

(C) Stage Discharge (not applicable to 
storage basins inherent in land application 
systems 5 

(D) Effluent Pumps 3 

(^ In Plant Pumps (including aif 

m^ ^ a 

(E) ff^ Stand-By Power Supply 3 

(1-) f^ Thermal Pollution Control 

Device 3 

ffe4 Treatment Processes fof Remo' ^ al t4 
M e tal &f Cyanid e a«4 Other Toxic Mate 

TOTAL POINTS " 

CLASSIFICATION 

Class 1 5 - 25 Points 

Class II 26 - 50 Points 

Class III 51 - 65 Pomts 

Class IV 66 - Up Points 

Facilities ha\'ing a rating of one thjough four 
points, inclusive, do not require a ccrtiticd oper- 
ator. ClassiBcation of all other facilities requires 
a comparable grade operator in responsible 
charge. 

Facilities having an activated sludge process will 
be assigned a minimum classification of Class II. 
Facilities having treatment processes for the rc- 
mo\al of metal or cxanide wiU be assigned a 
minimum classification of Class II. 
Facilities having treatment processes for the bi- 
ological remo\al of phosphoiTis will be assigned 
a minimum classification of Class III. 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



55S 



PROPOSED RULES 



Statuloiy Authority G.S. 90A-37. 

.0004 OKFIMTIONS 

The tollcn\ing definitions shall apply through- 
out this Subchapter: 

(1) Activated Carbon Beds. A 
physical 'chemical method for reducing sol- 
uble organic material from wastewater 
effluent; The column-type beds used in this 
method will have a flow rate varying from 
two to eight gallons per minute per square 
foot and may be either upflow or downflow 
carbon beds. Carbon may or may not be 
regenerated on the wastewater treatment 
plant site; 

(2) Aerated Lagoons. A basin in which all 
solids are maintained in suspen.sion and by 
which biological oxidation or organic matter 
is reduced through artificially accelerated 
transfer of oxygen on a flow-through basis; 

(3) Aeration. A process of bnngmg about in- 
timate contact between air or high purity 
oxygen and a liquid by spraying, agitation 
or diffusion; 

(4) .AgriculturalK manaijed site. Anv site on 
which a crop [s produced, managed, and 
harvested (Crop includes grasses, grains, 
trees, etc): 

( 5} f-H .\inmonia Air Stripping. A process by 
which the ammonium ion is first converted 
to dissolved ammonia (pll adjustment) with 
the ammonia then released to the atmos- 
phere by physical means; or other processes 
which remove petroleum products such as 
benzene, toluene, and xn icne; 

(_^ (-^ Carbon Regeneration. The regeneration 
of exhausted carbon by the use of a furnace 
to provide extremely high temperature 
which volatilize and o.\idize the absorbed 
impurities; 

(7) f4f C^arbonaceous Combined Carbon afi4 
Nitrog e n Stage. A r i lagL'(s) stage of 

wastewater treatment designed to achieve 
"secondary'" effluent limits; e* a [- . ingle i. tagc 
trcntmL'nt plant t+»4- »?««■ achic^ i o advanced 
I ' lfluent limit ', svilhin 4h» ' . . ame biological ft^ 
actor; 

(5) (^ Centrifuge. A mechanical device in 
which centrifugal force is used to separate 
soUds from Uquids and or to separate liquids 
of different densities; 

(')) f^ Chemical .\ddition !. . .Addition Systems 
- The addition of chemical(s) to wastewater 
at an application point for purposes of im- 
pnning solids removal, pH adjustment, 
alkalinity control, etc.; the capability to ex- 
periment with different chemicals and differ- 
ent application points to achie\e a specific 



result will be considered one svstem; the ca- 
pability to add chemical(s) to dual units will 
be considered one svstem; capability to add 
a chemical a[ different application points tor 
different purposes will result in at^ least two 
systems being rated; 

( 1 ) f% Chemical Sludge Conditioning. The 
addition of a chemical compound such as 
lime, ferric chloride, or a polymer to wet 
sludge to coalesce the mass prior to its ap- 
plication to a dewatering device; 

(1 1) f+(i^ Closed Cycle Systems. Use of holding 
ponds or holding tanks for containment of 
wastewater containing inorganic, non-toxic 
materials from r . ludga handling faciliticr . fo* 
water purification plantn; wa '. to' i ' t ater from 
sand, gravel, crushed stone or other similar 
operations, from which there is no discharge 
to the surface waters; Such systems shaU 
carr}' a maximum of two points regardless 
of pumping facilities or any other 
appurtenances; 

( 12) Combined Rem(n-al of Carbonaceous 
BOD and Nitrogenous Removal by 
Nitnfication - A single staue s\ stem "de- 
signed" to achieve "advanced" pennit 
effluent limits on BOD and ammonia nitrii- 



cen within the same biological reactor; 



(13) f4-l-^ De-chlonnation. Ihe partial or com- 
plete reduction of residual chlorine in a Ut]- 
uid by any chemical or physical process; 

( 14) (-44^ Denitrification Process. The conver- 
sion of mtrate-nitrogen 1o nitrogen gas; 

(44-^ I'ffluont I'umpii. Pump ;, u -. ijd fn* lilting 
treated wastewater from t+t«^ plant to- a dt**- 
charge point; 

(15) {44i Llectrodialysis. Process for removing 
ioni/ed salts from yvater through the use of 
ion-.selective ion-exchange membranes; 

( 16) f4-^ Filter Press. A process operated me- 
chanically for partially dewatering sludge; 

( 17) f44f Foam Separation. Ihe planned 
frothing of wasteyvater or yvastewater effluent 
as a means of removing excessive amounts 
of detergent materials through the introduc- 
tion of air in the fonn of fine bubbles; also 
called foam fractionation; 

(18) f4^ Grit Removal. The process of re- 
moving grit and other heavy iruneral matter 
from yvastewater; 

( 1')) f+*} ImhotT Tank. A deep two stor>- 
wasteyvater tank consisting of an upper 
sedimentation chamber and a knver sludge 
digestion chamber; 

(4% influent Pumpf . . Pumpy . wliich afe located 
m a treatment plant befiire primary treat 
ment; 



559 



5.-,V NORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



f^O} In plant Pumpr . . Pump ' i or i nontiaJly te- 
oatocl within Ae troutmont plant to- pro' i ido 
oontinuduf i multi i i tago treatment, including 
r . ludgu pumpr i »ft4 rocirculutidn pumps; 

(20) (44^ Instrumented I'low iMeasurement. A 
device which indicates and/or records rate 
of flow; 

(21) (45^ Ion Exchange. A chemical process in 
which ions from two different molecules are 
exchanged; 

(22) (-3^ Land application: 

(a) Sludge Disposal. A final sludge disposal 
method by which wet sludge may be ap- 
plied to land either by spraying on the 
surface or by subsurface injection (i.e., 
chisel plow); Cnot applicable for types of 
sludge described in (44) (11) of this 
Rule@; 

(b) WiHitcwatcr. Treated I'lfluent. The proc- 

ess of spraying treated wastewater onto a 
land area or other methods of application 
of wastewater onto a land area as a means 
of fmal disposal and or treatment; 

(23) (-5-H Microscreen. A low speed, contin- 
uously back-washed, rotating drum filter 
operating under gravity conditions as a pol- 
ishing method for removing suspended sol- 
ids from effluent; 

(24) (-i^ Nitrification Process, The 
biochemical con\ ersion of uno.xidLzed nitro- 
gen (ammonia and organic nitrogen) to 
oxidij^ e oxidi/cd nitrogen (usually nitrate); 

(25) QMi Nitrogenous Stage. A separate stage 
of wastewater treatment designed for the 
specific purpose of converting ammonia ni- 
trogen to nitrate nitrogen; 

(26) (-3^ Phosphate Removal, Biological. The 
removal of plKv . phat t! phosphorus from 
wastewater by chtfmicul precipitation »f 
oth e r means; an oxic anoxic process de- 
signed to enhance luxury' uptake of 
phcisphorus h\ the micrcxirganisms; 



(27) f4>4 Polishing Pond. A holdmg pond fol- 
lowing secondary treatment with sufficient 
detention time to allow settling of finely 
suspended solids; 

(28) (-3U) Post Aeration. Aeration following 
conventional secondary' treatment units to 
increase effluent D.O. or for any other pur- 
pose; 

(2Q) f4t4^ Post Aeration. (Cascade) A polishing 
method by which dissolved ox\'gen is added 
to the effluent by a nonmechanical, gravity 
means of flowing down a series of steps or 
weirs; The flow occumng across the steps 
or weirs moves in a fairly thin layer and the 
operation of the cascade requires no opera- 
tor adjustment; thus, zero points are as- 



(3 



signed even though this is an essential step 
to meeting the limits of the discharge permit; 

(30) f44f Powdered or Granular Activated Car- 
bon Feed. A biophysical carbon process 
that utilizes biological activity and organic 
absorption by using powdered or granular 
activated carbon; Virgin and or regenerated 
carbon is feed controlled into the system; 

(43^ Preaeration. m- Fqualij'.ation. A tank 
se constructed to provide aeration prior to 
primary treatment; e+ e qualii'.e flow through 
tfee plant; 

(44^ Pr e packag e d Unit fef Pa'mos'al t>f Qtlaft4 
Gr e as e . A «f»t- used fof tlfe r e moval »f eil 
afi4 gr e a '. e from wa 'i to' i vator hy chemical 
precipitation, mechanical desice ;. . ' »f other 
means »f separation; 

(32) f4^ Preliminary Units. Unit operations in 
the treatment process, Hftrt operation '. , such 
as screening and comminution, that prepare 
the liquor for subsequent major operations; 

(33) f44) Industrial Pre-treatment: 

(a) Pre-treatment Umt, Industnal, The con- 

ditioning of a waste at its source before 
discharge, to remo\'e or to neutralize sub- 
stances injurious to sewers and treatment 
processes or to effect a partial reduction 
in load on the treatment process operated 
by a go\eming bod\' whose wastewater 
treatment plant is rated; pursuant to these 
Rules; 

(b) Pre-treatment Proizram, Industrial - must 
he a state or 1 P,\ required proi:ram to 
receive points on the rating sheet; 

(34) (4*-) Pnmary Clarifiers, The first settling 
tanks through w hich wastewater is passed in 
a treatment works for the purpose of re- 
moving settleable and suspended sohds and 
BOD which is associated v\'ith the solids; 

(35) Pumps. .Ml influent, effluent and in-plant 
pumps; 

(36) (-44) Radiation. Dismfection and or 
sterilization process utilizing devices emitting 
ultraviolet or gamma rays; 

(37) (4-!^ Reverse Osmosis. A treatment proc- 
ess in which a heaw contaminated liquid is 
pressurized through a membrane fonning 
nearly pure liquid free from suspended sol- 
ids; 

(3S) (4% Rotating Biological Contractors. A 

fixed biological growth process in which 

wastewater flows through tanks in which a 

scries of partially submerged circular surfaces 

arc rotated; 

(321 H% Sand Filters: 

(a) Intermittent Biological. Filtration of 

cflluent following septic tanks, lagoons, 

or some other treatment process in wluch 



5:8 NORTH CAROLINA REGISTER July 16,1990 



560 



PROPOSED RULES 



further biodecomposition is expected to 
produce desired effluents; I lydraulic load- 
ing rates on these fihers are computed in 
gpd ac and have a resuhing low gpm sf 
(less than one); 
(b) i^ecirculaling biological - the same t\pe 
of sand filter as defined in Subpara'japh 
(a) with the added capability to recycle 
effluent back throuizh the sand filter: 

(40) IrU-f Sand or Mixed-Media 1-ilters. A pol- 
ishing process by which effluent limits are 
achie\ed through a further reduction of sus- 
pended solids: 

(a) low rate -- gravity, hydraulically loaded 
filter u ith loading rates in the one to three 
gmp '. f gpm-sf range; 

(b) high rate -- a pressure, hydraulically 
loaded filter with loading rates in the five 
gmp - jf irpm-sf range; At any rate, the 
loading rate will exceed three gmp r . f; 
gpm-sf: 

(41 ) (-44| Secondan.' Clarificrs. A tank which 
follows the biological unit of a treatment 
plant and which has the purpose of remov- 
ing sludges associated with the biological 
treatment units; 

(42) f4^ Separate Sludge Reaeration. A part 
of the contact stabilization process where the 
activated sludge is transferred to a L . liibilii'.a 
tion tank s' l hur e aL ' rution yt ctnitiniiL ' d and 
aerated before retummg it to the aorution 
contact basin; 

(43) M-H Septic Tank. A single-story settling 
tank in which settled sludge is in contact 
with the wastewater flowing through the 
tank; shall not be applicable for septic tank 
systems ser\ing single famil\" residences hav- 
ing capacity of 2,00(3 gallons or less of which 
tk* f+H4- r e sult ¥Pt » discharge to '. urfucL ' ' . i i at e r ;. ; 
a nitntication field; 

(44 1 (-4*4 Sludge Digestion. The process by 
which organic or volatile matter and sludge 
is gasified, liquefied, mineralized or con- 
verted into more stable organic matter 
tlirough the activity of living organisms, 
which includes aerated holding tanks; 

(45) f4^ Sludge DPiing Beds. \n area com- 
prising natural or artificial layers of porous 
materials upon which digested sewage sludge 
is dncd b\ drainage and evaporation; 

(46) (-pvf Sludge I'lutriation. .\ process of 
sludge conditioning in which certain con- 
stituents arc remoNcd by successive washings 
with fresh water or plant effluent; 

(4"^ I (-W^ Sludge Gas I'tili/ation. The process 
of using sewage gas for the purpose of heat- 
ing buildings, dri\ing engmes, etc.; 



(48) f^ Sludge Holding Tank (Aerated and 
Nonaerated). A tank utihzed for small 
wastewater treatment plants not containing 
a digester in which sludge may be kept fresh, 
and supernatant withdrawn prior to a drying 
method (i.e. sludge drying beds); This may 
be done by adding a small amount of air 
simply to keep the sludge fresh, but not 
necessarily an amount that would be re- 
quired to achieve stabilization of organic 
matter. A nonaerated tank would simply 
be used to decant sludge prior to dewatering 
and would not allow long periods (se\eral 
days of detention) without resulting odor 
problems; 

(4^) {4M Sludge Incinerators. A furnace de- 
signed to bum sludge and to remo\'e all 
moisture and combustible materials and re- 
duce the sludge to a sterile ash; 

(50) (4^ Sludge Stabilization (Chemical or 
Thermal). A process to make treated sludge 
less odorous and putrescible, and to reduce 
the pathogenic organism content; This may 
be done by pH adjustment, chlorme dosing, 
or by heat treatment; 

(51) (-5^ Sludge Thickener. .\ type of 
sedimentation tank in which the sludge is 
permitted to settle and thicken through agi- 
tation and gra\ity; 

CSl) f-?4| Stabilization Lagoon. .-\ type of 
o.xidation lagoon in which biological 
o.xidation of organic matter is effected by 
natural transfer of oxygen to the water from 
air (not a polishing pond); 

(Sy) (-^ Stand- By I'ower Supply. On site or 
portable electrical generating equipment; 

(54) (-^ Static Screens. A stationary screen 
designed to remove solids, including non- 
biodegradable particulate (floatable solids, 
suspended solids and BOD reduction) from 
municipal and industrial wastewater treat- 
ment systems; 

(55) (-^ Tertiary Treatment. A stage of treat- 
ment following secondaPv' which is primarily 
for the purpose of effluent polishing: .\ 
settling lagoon or sand or coal filter miglit 
be cmploNcd for this purpose; 

(56) (-5^ Thermal Pollution Control De\ice. 
A device pro\iding for the transfer of heat 
from a fluid flowing in tubes to another fluid 
outside the tubes, or \ice \crsa; or, other 
means of regulating liquid temperatures: 

(57) (-4-5-f "Thenn,'il Sludge Conditioner. ( Thor 
mcil). .\ conditioning process by wliich heat 
is added for a protracted period of time to 
improve the dewaterability of sludge by the 
solubili/ing and hydrauli/ing of the smaller 
and more higlily h\ drated sludge particles; 



561 



5:S :\ORTH CAROL[i\A REGISTER July 16,1990 



PROPOSED RULES 



(58) {4^ Toxic Materials. Those wastes or 
combinations of wastes, including disease- 
causing agents which after discharge and 
upon exposure, ingestion, inhalation or as- 
similation into any organism, either directly 
from the environment or indirectly by 
ingestion through food chains, will cause 
death, disease, behavioral abnormalities, 
cancer, genetic mutations, physiological 
malfunctions (including malfunctions in re- 
production) or physical deformations, in 
such organisms or their offspring; Toxic 
materials include, by way of illustration and 
not limitation: lead, cadmium, chromium, 
mercury, vanadium, arsenic, zinc, ortho- 
nitro-chlorobenzene (ONCB), 
polychlorinated biphenyls (PCBs) and 
dichlorodiphenyl tnchloroethane (DDT); 
and any other materials that have or may 
hereafter be determined to have toxic prop- 
erties; 

(59) f6% Tnckhng Filter. A biological treat- 
ment unit consisting of a material such as 
broken stone or rock over which wastewater 
is distributed; A high rate trickling filter is 
one which is operated at between 10 and 30 
mgd per acre. A low rate trickling filter is 
one which is designed to operate at one to 
four mgd per acre; 

(60) (Mi Trickling Filter (Packed Tower). A 
plug flow type of operation in which 
wastewater flows down through successive 
layers of media or filtrate material; Organic 
material is removed continually by the active 
biological fixed growth in each successive 
layer. This method may produce "second- 
ary" quahty effluent, or may be adapted to 
produce a nitrified cffiuent; 

(61) (4^ Vacuum Filters, Centrifuges, or Filter 
Presses. Devices which are designed to re- 
move excess water from cither digested or 
undigested sludge prior to disposal or further 
treatment. 

Statuton Authority G.S. 90A-37. 

SUBCIIAriKR 8D - POWERS AND 
ENFORCEMENT 

.0004 REVOCATION OR REEINQLISIIMENT 
OF ( ERIII l( AllON 

(a) The certification commission may revoke 
the certification of an operator in accordance 
with the provisions of NCGS 90A-41. Prior to 
the commission taking action on a proposed re- 
vocation, the operator shall be given an oppor- 
tunity to submit a written statement and present 
an oral arcument before the commission at a 



regularly scheduled meeting. Notice of the 
meeting shall be delivered personally or by certi- 
fied mail at least 1 5 days prior to the meeting. 

(b) Notice of revocation shall be delivered to 
the operator personally or by certified mail at 
least 20 days prior to the effective date of revo- 
cation. The notice shall contain the alleged facts 
or conduct upon which the revocation is based 
and shall inform the operator of the opportunity 
to contest the action. The procedures to be fol- 
lowed shall be as specified in 15A NCAC 8A 
.0302. 

(c) Certification may be relinquished by sub- 
mission to the Certification Commission of the 
original certificate and a notarized statement of 
relinquishment. 

Statutory Authority G.S. 90A-4I: I43D-300: 
I50B-3; I50B-23: 1508-38; I50B-52. 

.0005 NOTIFICATION TO ENVIRONMENTAE 
MANAGEMENT COMMISSION 

The commission shall notily the Environmental 
Management Commission of the failure of an 
owner of a wastewater treatment facility to pro- 
\ide a certified operator or of the revocation or 
relinquishment of the certificate of any operator. 

Statutory Authority G.S. 90A-35; 90A-43; 
I43B-360. 

.0006 RECERTIFICATION FOLLOWING 

REVOCATION OR RELINQLISHMENT 

(a) After revocation or relinquishment has been 
effective for a period of not less than 270 days, a 
person may apply in writing for recertification by 
the commission, including in his petition any 
relevant facts concerning changes to conditions 
under which revocation or relinquishment oc- 
curred. Such facts should show clearly that ap- 
plicant will comply with the laws and regulations. 

(b) Within 120 days following receipt of an 
application for recertification, the commission 
will notify the applicant by letter of its decision 
to deny or grant examination eligibility in ac- 
cordance with procedures set out at subsection 
8B .0102 herein. Additional eligibility recjuirc- 
ments including a show cause conference may be 
imposed by the commission as it deems appro- 
priate. Eligibility will only be granted if there is 
substantial evidence that the conditions leading 
to the revocation or relinquishment have been 
corrected. 

(c) Recertification of a person as a wastewater 
treatment plant operator shall only occur by 
means of application and examination. 1 he ex- 
aminations will not be waived. The applicant 
shall meet the eligibility requirements set forth in 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



562 



PROPOSED RULES 



Section SB .0200 beginning with 8B .0201 except 
that applicant shall not be eligible for 88 .0206. 
Operational experience prior to revocation or 
relinquishment will not apply as eligibility tor 
future recertification. .Applicant shall not be eli- 
gible for temporary certification under Section SB 
70404. 

(d) I'pon notification of the commission's de- 
cision to deny eligibility, the applicant may ap- 
peal the decision pursuant to the procedures 
contained in Article 3A of Chapter 150B of the 
General Statutes. 

Statutory Aiithoritv G.S. 90A-39; 150B-3; 
I50B-3S. 

****************** 



(3) 
(4) 



No 



otice is hereby given in accordance with G.S. 
I50B-12 that the North Carolina Wildlife Re- 
sources Commission intends to amend mlefsl 
cited as L\4 XCiC lOD .0002 and .0003. 



1 he proposed effecfne date of this action is .\o- 
vember I. 1990. 

1 he public hearing will be conducted at 7:30 
a.m. on September II, 1990 at Daxidson County 
Courthouse. Lexington, \C 2" 29 2. 



Cc 



■ omment Procedures: Interested persons may 
present their v/tnvj either orally or in writing at the 
hearing. In addition, the record of hearing will 
be open for receipt of written comments from Au- 
gust 27. 1990 through September 26. 1990. Such 
written comments must be delivered or mailed to 
the X.C. Wildlife Resources Commission. 312 .\. 
Salisbury Street, Ralcii^h. \orth Carolina 
27604- f I SS. 

CII.VPTKR 10 - Wll DI.IKE RKSOl RCES .AM5 
W ATF.K SAKEIA 

SLBCII VI'IFR 101) - (; AMK LANDS 
RKGLIAIIONS 

.0002 GENERAL REGL LATIONS REGARDING 
USE 

(f) Irappiniz. Subject to the restrictions con- 
tained in 15A NCAC lOB .0110, .0.^02 and .0303, 
trapping of furbcaring animals is permitted on 
game lands dunng the applicable open seasons, 
except that trapping is prohibited: 

(1) on the field trial course of the Sandliills 
Game I and; 

(2) on the Harmon Den and Sherwood bear 
sanctuanes in Hawvood Countv: 



(5) 



(6) 



in posted "safety zones" located on any 
game land; 

by the use of multiple sets (with anchors 
less than 15 feet apart) or bait on the Na- 
tional Forest Lands bounded by the Blue 
Ridge Parkway on the south, US 276 on 
the north and east, and NC 215 on the 
WTSt; 

on that portion of the Butner- Falls of 
Neuse Game Lands marked as the Penny 
Bend Rabbit Research area; 

on Cowan's Ford Waterfowl Refuge in 
Gaston, Lincoln and Mecklenburg Coun- 
ties; 

on Linwood Waterfowl Rcfuize in 



121 on 



Davidson Countv. 



On those areas of state-owned land known col- 
lectively as the Roanoke River Wetlands and 
including the Broadneck, Compan\' Swamp, 
Conine Island. Speller-Outlaw and U rquhart 
tracts, controlled trapping is allowed under a 
permit system. For information contact the Di- 
vision of Wildlife Management of the Wildlife 
Resources Commission. 

Statutom Authority G.S. 113-134: 113-264: 
113-270.3: 113-291.2: 113-291.5: 113-305; 
113-306. 

.0003 IILNTING ON GAME LANDS 

(e) Hunting Dates: 
(3) Any game may be taken on the following 
game lands during the open season, except 
that: 
(K) Additional restrictions or modifications 
apply as indicated in parentheses follow- 
ing specific designations: 
Alexander and Caldwell Counties-- Brushy 

.Mountains Game I ands 
Anson County--.\nson Game I and 
Ashe County--Bluff .Mountain Game Lands 
Ashe County--Cherokee Ciame Lands 
Ashe and Watauga Counties--I-lk Knob 

Game Land 
A\er.', Buncombe, Burke, CaldwcU, 
Hapvood. Henderson, Jackson. Madison, 
McDowell, Mitchell, '['rans\l\ania, 
Watauga and Yancey Counties--Pisgah 
Game Lands (Harmon Den and 
- Sherwood Bear Sanctuaries in Haswood 
County are closed to hunting raccoon, 
opossum and wildcat. Training raccoon 
and opossum dogs is prohibited from 
March 1 to October 1 1 in that part of 
\Lidison Count)' north of the French 
Broad River, south of LS 25-70 and west 
ofSR 1319.) 



563 



5:S NORTH CAROLIN.A REGISTER July 16, 1990 



PROPOSED RULES 



Beaufort, Bertie and Washington Counties- 
- Bachelor Bay Game I^ands 

Beaufort and Pamlico Counties--Goose 
Creek Game Land 

Bnmswick County--Green Swamp Game 
Land 

Burke County--South Mountains Game 
Lands 

Burke, McDowell and Rutherford 
Counties-- Dysartsville Game Lands 

Caldwell County--Yadkin Game Land 

Carteret, Craven and Jones Counties-- 
Croatan Game Lands 

Chatham County--Chatham Game Land 

Chatham, Durham, Orange, and Wake 
Counties--Ncw Hope Game Lands 

Chatham and Wake Counties--Shearon 
Harris Game Land 

Cherokee, Clay, Graham, Jackson, Macon, 
Swain and Transylvania Counties-- 
Nantahala Game Lands (It is unlawful to 
take or hunt deer on Fires Creek Bear 
Sanctuary. Raccoon and opossum may 
be hunted only from sunset Friday until 
sunrise on Saturday and from sunset until 
12.00 midnight on Saturday on Fires 
Creek Bear Sanctuap, in Clay County and 
in that part of Cherokee County north of 
US 64 and NC 294, east of Persimmon 
Creek and liiwassee Lake, south of 
I liwassee Lake and west of Notteh' Riser; 
in the same part of Cherokee County dog 
training is prohibited from .March 1 to 
October 11. It is unlawful to train dogs 
or allow dogs to run unleashed on Fires 
Creek Bear Sanctuary at any time, except 
that dogs may be used when hunting 
raccoon or opossum and for hunting 
grouse and rabbits during the open sea- 
sons. It is unlawful to train dogs or allow 
dogs to run unleased on any game land in 
Graham County between March 1 and 
October 1 1.) 

Chowan County--Chowan Game land 

Chowan County--Chowan Swamp Game 
Land 

Cleveland County--Gardner-Webb Game 
Land 

Craven County— Ncuse River Game Land 

Craven County-- I'uscarora Game Land 

Currituck (rount\'-- North River Cjamc Land 

Currituck Count\-- Northwest Ri\er Marsh 
Game Land 

Dare County— Dare Game Land (No hunt- 
ing on posted parts of bombing range.) 

Davidson, Davie and Rowan Counties- 
Alcoa Game I and 

Dii' r idi . on Cuunt'i — Linvvoud Gumc ' Lund 



Davidson, Montgomery, Randolph and 

Stanly Counties--L'wharrie Game Land 
Duplin and Pender Counties— Angola Bay 

Game Land 
Durham, Granville and Wake Counties-- 
Butner-Falls of N'euse Game Land (On 
portions of the Butner- Falls of Neuse 
Game Land designated and posted as 
"safety zones" and on that part marked 
as the Penny Bend Rabbit Research /Vrea 
no hunting is permitted. On portions 
posted as "restricted zones" hunting is 
limited to bow and arrow during the bow 
and arrow season and the regular gun 
season for deer.) 
Franklin County--Franklin Game lands 
Gates County--Chowan Swamp Game 

land 
Granville County--Granville (jame Lands 
Henderson, Polk and Rutherford Counties- 

- Green River Game Lands 
Hyde County--GuLl Rock Game Land 
Hyde County-Pungo River Game Land 
Hyde and I'yrrell Counties--Nevv Lake 

Game Land 
Jones and Onslow Counties--Hofmann 

Forest Game Land 
Lee County-- Lee Game Land 
.McDoweU County--Hickory Nut Mountain 

Game Land 
Moore County-- Moore Game I and 
New Hanover ('ounty--Cattish Lake Game 

Land 
Orange County--Orange Game Land 
Person County-- Person Game Land 
Transylvania County--Toxaway Cjame I and 
Vance County-- Vance Game Land 
Wilkes County--Thurmond Chatham Cjame 
Land 
(4) Deer of either sex may be taken on the 
hunt dates indicated by holders of permits 
to participate in managed hunts scheduled 
and conducted in accordance with this 
Subparagraph on the game lands or 
portions of game lands included in the 
following schedule: 
Friday and Saturday of the first week after 
Thanksgiving Week; 

Uwharrie and Alcoa southeast of NC 49 
Third Saturday after Thanksgiving Day; 
Carson Woods 
Thurmond Chatham 
Thursday and Friday of the week before 
Thanksgiving Week: 
Sandhills east of US 1 
Sandhills west of US 1 
Fourth Saturday after Thanksgiving Day; 
Dysartsville in .McDowell County 



5:8 NORTH CAROLINA REGISTER July 16,1990 



564 



PROPOSED RULES 



IIickor)nut Mountain in McDowell 

County 
Pisgah in Aven' County 
Pisgah in Burke County 
Pisgah in CaldweU County 
Pisgah in McDowell County 
Pisuah in Yancey County north of US 

r9-I9B 
South Mountains 
Thurmond Chatham 
Apphcation forms for permits to participate 
in managed deer hunts on game lands, to- 
gether with pertinent information and in- 
structions, may be obtained from hunting 
and fishing license agents and from the 
Wildlife Resources Commission. Com- 
pleted applications must be received by the 
Commission not later than the first day of 
October next preceding the dates of hunt. 
Permits are issued by random computer se- 
lection, are mailed to the permittees 30 days 
prior to the hunt, and are nontransferable. 
Each permit is accompanied by an appro- 
priate big game tag. A hunter making a kill 
must tag the deer and report the kiU to a 
wildlife cooperatiir agent. 
(5) I'xcept as otherwise indicated, the follow- 
mg game lands or indicated portions 
thereof are closed to all hunting: Bertie, 
Halifax and Martin Counties— Roanoke 
River Wetlands, consisting of the state- 
owned Broadneck, (Company Swamp, 
Conine Island, Speller-Outlaw and 
L'rquhart tracts (controlled hunting is 
scheduled and allowed by permit only. 
Interested persons should contact the Di- 
vision of Wildlife .M;magement of the 
Wildlife Resources Commission at the 
/Vrchdale Building, ^\2 N. Salisbury 
Street, Raleiah, North Carolina ¥:^^<44-i 
276fl4-llSR.) ^ 
Caswell County--Cas\\ell Game Land (That 
portion designated and posted as a "Safety 
Zone") 
Dare County--Darc Game I ands (Those 
parts of bombing range posted against 
hunting) 
Davidson (?ountv--l inwood Waterfowl 
Refuge (except deer and dove may be 
hunted dunnu any open season from 
.September J_ tlirouLih ( ictc^ber 6). 
Davie--! lunting Creek Swamp Waterfowl 

Refuge 
Gaston, Lincobi and Mecklenburg 
Counties--Cowan's I'ord Wateifowl Ref- 
uge (except for \outh either-sex deer 
hunts by pennit only on the first and sec- 
ond Saturdays in October). 



Statutory Authoriiv G.S. lli-134; 113-264; 
1 13-291.2: 1 13-291.5: 113-305. 



1\ otice is hereby gh'en in accordance with G.S. 
I50R-1 2 that the Commission for Health Services 
intends to amend rule(s) cited as I5A NCAC ISA 
.0007; 15A NCAC I9A .0102; and I5A SCAC 
2/D .0706. 

1 he proposed effective date of this action is De- 
cember /, 1990. ' 

1 he public hearing will he conducted at 1 :00 
p.m. on August 15, 1990 at .4rchives and History 
Auditorium, State Library Building, 109 East 
Jones Street, Raleigh. \onh Carolina. 



c 



■ omment Procedures: Any person may request 
copies of the proposed rules bv contacting John 
P. Barklev, DEHXR. P. O. Bo.x 276S7. Raleigh, 
\C 276/'/-76S7. (919 1 733-724^. Written com- 
ments on these rules may be sent to Mr. Barklev 
at the above address or submitted at the public 
hearing. If you desire to speak at the public 
hearing, notify .Mr. Barkley at least 3 days prior 
to the public hearing. At the discretion of the 
Chairman, the public may also be allowed to 
comment on the rules at the Commission Meeting. 
Fiscal notes on applicable mles are awulable from 
Mr. Barkley. 

C1I.\PTHR 13 -SOLID \\ AS IL MAN AC.KMLN T 

SLBCIIAI'TKK 13A - IIAZARDOl S WAS IF. 
MANACKMKNl 

.0007 inRNTIFICATION .WO LISTING 

OK IIAZARDOl S WAS IKS - PART 26! 

(a) -i^ general pro' i i '' ionr . contained tft 40 CFR 
261.1 to 261. fe 8 (Subpart A) have been adopted 
by reference in accordance with G.S. 1 SOB- 14(c). 

Statutory Authority G.S. I30A-294(cj. 

CMAITKR 19 - HEALTH: tl'IDEMIOLOGV 

SLBCIIAPTER i9A - ACl TE COMMl NKABLE 
DISEASE CONTROL 

SECnON .0100 - REPORIING OF 
COMMLNICABI K DISKASE CONTROL 

.0102 METHOD OF REPORTING 

(a) \Micn a report of a disease or condition is 
required to be made pursuant to G.S. 130A-135 



565 



5:S NORTH CAROLIN.4 REGISTER Jidv 16,1990 



PROPOSED RULES 



through 139 and -W MCAC ^^ Mi^^ 1 5A 
NCAC l^A .0101, the report shall be made to 
the local health director as follows: 

(4) In addition to the requirements of Para- 
graph (1) and (2), the epidemiologic in- 
formation requested on a surveillance 
form provided by the Division »f llpulth 
S e P i ^ic e s shall be completed and submitted 
for the reportable diseases and conditions 
identified in -W >;CAC ^iA 4W46 15A 
NCAC 19A .mm (1), (6), (17), (IS), d')), 
(20), (21 ), f4^ (^*iT fa4^ f2^ (4^ fOOf, 

(4X|,(4%(4%f^44Tf^^f^^ (22). (23), 

t24],125j,t^t2!iL(22),Q0j,(32i,t33L 
(34). (37), (3S), (41), (42)., (43), (.44L(48l, 



Statutory Authority G.S. I30A-I34; I30A-I35; 
1 30 A- 141. 



Quantities Required 

^ \'l CTTCTT I T 1 '\J 

10-12 oz. frozen 
ll)-46 oz. canned 

(c) By signing the WIC Vendor Agreement, the 
local agency agrees to the following: 

(2) Monitor the vendor's performance under 
this agreement in a reasonable manner to 
ensure compliance with the agreement, 
state and federal WIC Program rules, reg- 
ulations and policies, and applicable law. 
Vondors A minimum of 20 percent of all 
authorized vendors shall he monitored at 
least once a year. »«4 An\' \ehdor shall 
be monitored within one week of »fHr a 
written request by the state agency; 

Statutory Authoritv G.S. I30A-36I . 



CHAPTER 21 - HEALTH: PERSONAL HEALTFI 



****************** 



SUBCHAPTER 210 - NUTRITION AND 
DIETARY SERVICES 

SECTION .0700 - WIC PROGRAM FOOD 
DISTRIBUTION SYSTEM 

.0706 AUIHORIZED WIC VENDORS 

(b) In order to participate in the W'lC program, 
the vendor shall: 

(16) Maintain a minimum inventory of eligi- 
ble food items in the store for purchase 
by WIC Program participants. All such 
foods shall be within the manufacturer's 
expiration date. The following items and 
sizes constitute the minimum inventors 
of elisrible food items for stores classified 
1 -4:^ 

Food Item 
Juices 

T\pe of Inventor\' 

Orange juice must be 

a\ ailahle in 2 types. 

A second flavor must 

be available in 1 

type. The types are 

12 oz. frozen 

and 

46 

oz. 

canned 

contuini-'r 



No 



ot/cc is hereby given in accordance with G.S. 
150B-I2 that the Commission for Health Senices 
intends to amend rules cited as 15A \C.4C I3B 
.0101: ISA .1957; ISC .0102. .1505 - .1506. 1523. 
.1525. .1532: adopt rules cited as 15A SCAC J 38 
.090/ - .0905: ISC .1533 - .1534. .2001 - .2006: 
and repeal rules citied as I5A .\CAC ISC .1503 
- .1504. 

NOTE: THE PROPOSED RULES IN THIS NO- 
TICE H.WE BEEN TRANSFERRED AND RE- 
CODIFIED FROM THE DEPARIMENT OF 
HUMAN RESOURCES, TITLE 10, CHAPTER 10 
OF THE NORTH CAROLINA ADMINISTR Vri\ E 
CODE 10 NCAC 10. .\NV QUESTIONS RE- 
GARDING THE RECODIFICATION SHOULD BE 
DIRECTED TO MR. BARKLEY AT THE AD- 
DRESS BELOW. 

I he proposed effecti\-e date of this action is De- 
cember I. 1990. 

1 he public hearing will be conducted at 1:00 
p.m. on August 15, 1990 at .-irchh-es and Histoiy 
Auditorium, State Library) Building. 109 East 
Jones Street. Raleigh. Sorth Carolina. 



c 



omment Procedures: .-Iny person may request 
copies of the proposed rules by contacting .lohn 
P. Barklev, DEHSR, P.O. Box 276S7, Raleigh. 
NC 276l'l-76S7, (919) 733-7247. Written com- 
ments on these tides may be sent to Mr. Barkley 
at the above address or suh»iitted at the public 
hearing. If you desire to .speak at the public 



5:S NORTH CAROLINA REGISTER July 16, 1990 



566 



PROPOSED RULES 



hearing, notify Mr. Barkley at least 3 days prior 
to the public hearing. At the discretion of the 
Chairman, the public may also be allowed to 
comment on the ndes at the Commission .Meeting. 
Fiscal notes on applicable rides are a\-ailable from 
Mr. Barkley. 

CHAPTER 13 -SOLID WASTE MANAGEMENT 

SLBCHAPIER 13B - SOLID WAS IE 
MANAGEMENT 

SECTION .0100 - GENERAL PROMSIONS 

.0101 DEEINITIONS 

The following definitions shall apply through- 
out this Subchapter: 

(54) "Ai:ncultural Waste" means waste mate- 
rials produced from the raismg oi_ plants and 
animals, including animal manures, bedding, 
plant >taLks. hulls. lea\es and \egetable mat- 
ter. 

{55) "Compost' means decomposed, humus- 
like organic matter, free from odor produced 
through composting and suitable for use as 
a sod conditioner with \"ar\"ing nutnent \al- 
ues. 

( 56) "Composting Pad" means an impermeable 
surface such as ela\'. asphalt or concrete 
where composting acti'. ities take place. 

(57| "Compost FacililN " means a site used t£ 
compost. A facihtN ma\' include matenals 
proce^slng and hauling equipment: struc- 
tures t£ control drainage: and structures to 
collect and treat leachate: and storage areas 
for the incoming waste, the t'lnal products, 
and residual matenals. 

( 5S! "(\Mnposting" means the controlled de- 
composition ot^ organic waste bv naturalh' 
occurring bactena. Melding a >table. humus- 
like, stenle final product resulting m \olume 
reduction of 4n - ^ percent. 

( sQ I "Curing" means the final state of 
compostmg. after the ma|ont\ of the readilv 
metabolized matenal has been decomposed. 
in which the compost matenal stabilizes and 
dries. 

(60) "Inorganic" means substances in which 
there are no carbon-to-carbon bonds: mm- 



eral matter. 
(61 ) "CJrganic Waste" means waste composed 
of materi;ils which contain carbon-to-carbon 



bo^d^ and are biodegradable. Includes 
per. wood, food wastes and \;ird wastes. 



Ci: 



|6Jl 



'athi 



s" means org:inisms that are 

capable of producing infection or diseases, 
often found in waste matenals. 

(63) "Sil, iculture Waste" means waste materi- 



(64 

[±5_ 
(66 



of forest trees, including bark and 

woodchips. 

) "Stabilization" means the final decom- 



position and cunng of compost so that it 
does not reheat when wetted nor gi\'e off 
odors. 



Windrow" means an elongated compost 



(6-; 



\ "W'indrow Compostmg" means the 
composting of organic wastes in a senes of 
elongated piles called w indrow s. which are 
turned penodicallv to aerate and mix the 
waste matenals to speed up decomposition 
and reduce odors. 

I "ln-\'essel (.omposting" means a process 
using mechanized equipment to compost 
wastes in an enclosed area with controlled 
conditions for moisture and oxvgen. 



als produced Irom the care and cultivation 



Statutory .Authority G.S. 130.4-294. 

SECTION .0900 - ^ AKD IRASII COMI'OSIINC; 
FACILITIES 

.0901 PROCEDL RE FOR PERMIT 

(a) .\ separate "^';ird Trash Composting" per- 
mit Will not be required for a sanitan.' landfill fa- 
cility which designates a yard trash composting 
area witliin facility boundaries. Application and 
operational requirements as set forth in Rules 
.0W3 and .0904 of this Section shall be addressed 
in submittal for a sanitary landfill permit. 

(b) The seal of a professional engineer is not 
required when submitting plans for a ^'ard Trash 
Composting permit. A mmimum of three sets 
of plans will be required in each application. 

Statutory .Authority G.S. /30.A-309./ 1. 

.0902 APPi.IC.VUII.I 1"^ I OR YARD IRASII 
COMPOSIINC; 

As of Januan" I, 1993, disposal of yard waste in 
a sanitary landfdl shall be prohibited: however. 
>ard trash which has been separated ma\" be ac- 
cepted at a sanitar>" landfill where the facility 
provides and maintains a separate yard trash 
compostmg area. 
( Ij .Applicability. .\ pennit is required for the 
construction and operation of composting 
facilities for \ard trash which process more 
than 3000 cubic \ards of material per year. 
\"ard trash may be composted with agricul- 
tural waste and silvicultural waste as defmed 
in Rule .0101 of this Section. The Section 
docs not regulate the composting of agricul- 
tural waste and sihicullure waste, unless 
mi.xed with \"ard trash. 



567 



5:S AORTH C.4ROLI\.4 REGISTER .July 16.1990 



PROPOSED RULES 



(2) Activities not requiring a permit. A permit 
is not required for the fonowing composting 
operations; 

(a) backyard Composting. 

(b) farming operations where the compost 
produced is re-used on the owner's land 
and not offered to the public. 

(c) facilities composting less than 3,000 cubic 
yards of material per year, meeting the 
following conditions: 

(i) notification of the Sohd Waste Section 
on an annual basis as to: 

(A) facihty location; 

(B) name of owner and operator; 

(C) address of owner and operator; 

(D) phone number of owner and opera- 
tor; 

(E) type of waste received; 

(F) amount of waste received; 

(G) composting process to be used; and 
(H) intended distribution of the fmished 

product, 
(ii) Agreement to operate in accordance 

with operational requirements as set forth 

in Rule .0904 of this Section, except for 

Rule .0904(7) of this Sect-ion. 
(iii) I'acility operates in accordance with all 

other state or local laws, ordinances, rules, 

regulations or orders. 

Statutoiy Authority G.S. l30A-309.il. 

.0')()3 AIMM ICAIION RKQI IRKMKMS FOR 
\.\Kn TR.\SII COMPOSTING 
FACII niKS 

(a) A permit for a yard trash composting facil- 
ity is based upon a particular stream of identified 
waste as set forth ui Rule .0902(1) of this Section 
and as defmed in Rule .0101 of this Subchapter. 
,\ny substantial change in the population or area 
to be served, or in the type, quantity or source 
of waste shall require a new pennit and operation 
plan. 

(b) Siting for a yard trash composting facility 
shall meet standards as set forth in Rule .0503 of 
this Section, except for Rule .0503(1 )(c), (d) and 
(2)(d)(Li) of this Scctitjn and the following: 

(1) 50-foot minimum buffer between property 
lines and compost pad or storage area; 

(2j 500-foot minunum buffer between 

compost pad or storage area and resi- 
dences or dwellings; 

(3) 20()-foot minimum buffer between streams 
and rivers and compost pad or storage 
area; and 

(4 1 25-foot minimum distance between 
compost areas and swales of berms; 



(5) compost pad and storage area shall not 
be allowed in designated "buffer area" for 
sanitary landfdl; 

(6) bottom elevation of compost pad and 
storage areas shall be a minimum of two 
feet above seasonal ground water ele- 
vation. 

Alternative buffers for an enclosed facility may 
be approved on a case by ca.se basis. 

(c) The following information shall be required 
for reviewing an apphcation for a yard trash 
composting facility: 

(1) an aerial photograph or map on a scale 
of at least one inch equals 400 ft. accu- 
rately showing the area within one mile 
of the proposed site's boundaries with the 
following specifically identified: 

(A) entire property owned or leased by the 
person proposing the facility; 

(B) land use and zoning; 

(C) location of all homes, industrial 
buildings, public or pri\ate utilities, and 
roads; 

(D) location of wells, watercourses, dry 
runs, and other applicable details regard- 
ing the general topography. 

(2) A site plan on a scale of at least one inch 
equals 200 feet showins proposed areas 
for: 

(A) recei\ing; 

(B) processing staging: 

(C) production; 

(D) curing and storage; 

(E) fencing; 

(F) description of drainage characteristics 
identifying both site run-on and run-off, 
ditches, and run-off controls; 

(Ci) access road; 

(11) existing proposed contours. 

(3) A written report that ccmtains the follow- 
ing: 

(A) anticipated t\pc, source, and composi- 
tion of waste to be recci\ed; 

(B) provisions to maintain a clean and or- 
derly operation: 

(i) effective barrier to pre\ent unauthor- 
ized entry and dumping: 

(ii) all \\.eather access road; 

(iii) signs posted with name of owner, 
operator, contact person and number in 
case of emergency and hours of opera- 
tion: 

(i\) dust control measures; 

(v) litter control measures; 

(\i) tire protection and control measures; 
and 

(\ii) odor control measures and practices: 

(C) designed capacity of the facility; 



5:8 NORTH CAROLINA REGISTER July 16,1990 



56,S 



PROPOSED RULES 



(D) composting time duration, time from 
initiation of the composting process to 
completion and distribution; 

(E) for windrow s\stems, the windrow 
construction, including width, length, and 
height; 

(I-) method of aeration, including turning 
frequency or mechanical aeration equip- 
ment and aeration capacity; 

(G) for in-vessel composting systems, a 
process flow diagram of the entire process, 
including aU major equipment and flow 
streams; 

(11) personnel required and their responsi- 
bilities; 

(I) a description and an identification ot the 
surface for the proposed site, area, and 
depth to seasonal higli ground water; 

(J) a description of the composting pad; 

(K) a description of any monitoring that 
will occur invoking the composting proc- 
ess or the site; 

(L) sources of waste input. 
(4) An operational plan which contains the 
following: 

(A) explanation of daily operation and 
maintenance; 

(B) proposed equipment; 

(C) person responsible for operation; 

(D) control and inspection of incoming 
waste; 

(E) method for measuring incoming waste 
or access to scales; 

(F) \ehicle control and-unloading; 

(G) method and sequence of processing the 
waste; 

(H) leachate and mn-otf control measures; 
(1) description of ultimate use for finished 

compost; 
(J) plan for back-up system if poor quality 

product produced or change in market 

conditions dc\clop. 

Statutoiy Authority G.S. I30A-309.I I. 

.WQ-X OI'KK ATtONAL REQl IREMKNTS 1 OR 
\ ARI) IR ASM COMI'OSriNG 
FA( II IIIKS 

Any person who maintains or operates a yard 
trash composting facility shall mamtain and op- 
crate the site in accordance with the following 
practices, unless otherwise specified m the permit. 

( 1 ) Plan and Permit Requirements: 

(a) construction plans and conditions of per- 
mit shall be follov\ed; 

(b) a copy of the pemiit, engineering plans, 
and operational reports shall be kept on 
site at all times; 



(c) facility shall be operated in a manner to 
control vectors; 

(d| facility shall not mix incoming waste with 
finished compost to prevent re- 
introduction of pathogens; 

(e) more than 75 percent of the compost 
stored at the facility shall be used or sold 
for use within each year beginning the 
second year after the facility start-up; 

(0 the amount of compost stored at the facil- 
ity shall not exceed the designed storage 
capacity; 

(g) yard trash, agricultural wastes or 

silviculture waste which shall not be made 
into compost shall be rem<ned monthly: 

(hj only yard trash and agricultural waste or 
silviculture waste may be accepted at the 
facility; 

(i) if solid waste other than yard trash, agri- 
cultural waste or silviculture waste is left 
at the facility, it shall be separated and 
stored in a manner that pre\ents \ector 
problems and shall be remo\ed within 
seven days; 

(j) particle size of larger trash items such as 
limbs, trees, and stumps shall be reduced 
to promote composting; 

(k) yard trash must be removed from con- 
tainers, unless the containers or bags or 
another material that has been approved 
by the section as biodegradable; 

(1) compost must be aerated to maintain ele- 
vated temperatures and produce a 
pathogen free, sterile compost product; 

(m) methods of composting. appro\ed by the 
Division, which result in aerobic 
biochemical degradation of the organic 
material received shall be followed; 

(n) windrow construction and turning fre- 
quency shall be sufficient to maintain 
aerobic conditions to produce a compost 
product in the desired time frame; 

(o) the waste contains no domestic sewage, 
sewage sludge, septage. or municipal solid 
waste; 

(p) compost shall rccci\e fuial aeration upon 
completion of composting c\ cle to ensure 
stability before distribution; 

(q) all areas for composting and storage of 
material shall be on an impenious base; 

(r) odors shall be controlled and minimized; 

(s) the final material shall be turned at least 
once during a 12-month intcr^•al: 

(t) the resulting compost shall not reheat 
upon standing to greater th:m 21) degrees 
C above the ambient temperature shall 
ha\c a moisture content between 35 and 
60 percent. Tliree da\s after the pile has 



569 



5:8 l\ORTH CAROLL\A REGISTER July 16,1990 



PROPOSED RULES 



(b) 
(c) 



been formed, the interior temperature of 
the pile shall be measured two feet from 
the outside surface. 

(2) Drainage Control Requirements: 

(a) surface water shall be diverted from the 
operational area; 

windrows shall be constructed horizontal 
to slopes; 
the site shall not impound water. 

(3) Water Protection Requirements. Lxachate 
shall be recirculated on piles to maintain 
moisture, contained on site or properly 
treated prior to discharge. An NPDES per- 
mit may be required prior to discharge of 
leachate to surface waters. 

(4) Access and Security Requirements; 

(a) the site shall be secured by means of gates, 
chains, berms, fences, or other security 
measures approved by the Division, to 
prevent unauthorized entry; 
an attendant shall be on duty at the site 
at all times wliile it is open to the public 
to ensure compliance with operational re- 
quirements; 

the access road to the site shall be of all- 
weather construction and maintained in 
good condition. 
Sign Requirements: 
signs shall pro\idc information on owner, 
operator, contact person and number in 
case of emergency, and the hours during 
which the site is open for public use; 
traffic signs or markers shall be provided 
as neccssarv' to promote an orderly traffic 
pattern to and from the discharge area and 
to maintain elTicient operating conditions; 
signs shall be posted stating that only yard 
trash can be received at the site. 
(6) Safety Requirements: 

(a) open burning of solid waste shall be pro- 
liibited; 

equipment shall be pro\ided to control 
accidental tires or arrangements shall be 
made \\ ith the local fire protection agency 
to inunediately provide fire-liglitmg ser- 
vices w^hen needed; 

space shaU be provided between piles to 
allow access for vehicles, including fire 
equipment. 
.\Ionitiinng and Reporting Requirements: 
Monitoring (including groundwater, sur- 
face water, air, waste components, soil, 
or plant tissue analyses) may be required 
based on a case by case e\aluation to in- 
sure protection of the environment. 

An annual report must be submitted 
which includes the following; information: 



(b) 



(c) 



(5) 
(a) 



(b) 



(c) 



(b) 



(c) 



(7) 
(a) 



(b) 



(c) 



(i) sources, type, quantity (by weight or 

volume) of waste received at the facility; 
(ii) the turning frequency (if applicable) and 

the timing and amount of water addition; 
(iii) sampling of temperature duration and 

changes during composting; 
(iv) the quantity, by weight or volume, of 

compost produced; 
(v) the quantity, by weight or volume, of 

compost removed from the facility; 
(vi) a description of the end product and 

distribution or disposal. 
The annual report shall contain a composite 
sample of the compost produced and shall 
be analyzed at intervals of every 20,000 tons 
of compost produced or every three months, 
whichever comes first, for the following pa- 
rameters and units using the methods listed 
which are adopted by reference in accord- 
ance with G.S. 150B- 14(c): 



Parameter 


Unit 


Method 


Moisture 


% 


EPA 160.3 


Total 






Nitrogen 


" dry weiglit 


EPA 351 

and 353 


Total 






Phosphorus 

Tntal 


"o dr>- weight 


EPA 365 


Potassium 


"o dry weiglit 


EPA 3050/ 
7610 


Reduction 






in Organic 






.Matter 


°0 


EPA 160.4 


manic 






Matter 


"/o 


EPA 160.4 


PH 


standard units 


EPA 9045 



The reduction of organic matter shall be 
determined by comparing the organic 
matter content of the feedstock into the 
composting process and the organic mat- 
ter content of the compost product by 
measuring the volatile solids content using 
EPA method 160.4. 'Ihc amount of re- 
duction shall be determined as a percent 
of the original amount contained in the 
feedstock using the followinc calculation: 



"uROM = cl 
- OMK))^, 100 



(OMK - )M) ()M(IOO 



where: %RO.M = reduction of organic 
matter, OM = "o organic matter content 
of dry matter before decomposition, and 
OMIC = "o organic matter content of dr> 
matter after decomposition. 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



570 



PROPOSED RULES 



Statutory Authority G.S. l30A-309.il. 

.0905 COMPOST CLASSIFICATION AND 
DISIKIBl HON 

Compost made from yard trash or yard trash 
and agricultural waste or yard trash and 
silviculture waste which contains no pathogenic 
organism, is odor free, innocuous, and contains 
no sharp particles which would cause injury to 
persons handling the compost, shall have unre- 
stricted distribution if directions are provided 
with the compost product. The directions shall 
address maturity, moisture holding capacity, and 
nutrient content. 

Statutory Authority G.S. I30A-309.I I . 

CHAPI KR 18 - KNMRONMKNTAL UKALTH 

SLBCIIAPTKR ISA -SANITATION 

SECTION .1900 - SEW.VGE TREATMENT AND 
DISPOSAL SYSTEMS 

.1957 DESIGN CRIIERIA lOR DESIGN OF 
ALTERNAIIX E SEWAGE SVSIEMS 

(b) FILL S^'STLM: A till system (including 
new and existing till) is a system in which all or 
part of the nitrification trench(es) is installed in 
fill material. .\ filJ system, including an existing 
fill site, may be approved where soil and site 
conditions prohibit the installation of a conven- 
tional or modified septic tank system if the re- 
quirements of this Paragraph are met. 

(1) Fill systems may be installed on sites 
where at least the first 1 8 inches below the 
naturally occurring soil surface consists of 
soil that is suitable or provisionally suit- 
able with respect to soil structure and clay 
mineralogy, and where organic soils, re- 
strictive horizons, saprolite or rock are not 
encountered. Further, no soil wetness 
condition shall exist within the first 12 
inches below the naturally occurring soil 
surface and a groundwater lowering sys- 
tem shall not be used to meet this re- 
quirement. Fill systems shall not be 
utilized on designated wetlands unless the 
proposed use is specifically approved in 
writing by the designating agency. The 
following requirements shall also be met: 
(A) Nitrification trenches shall be installed 
with at least 24 inches separating the 
trench bottom and any soU horizon un- 
suitable as to soil structure, clay mineral- 
ogy, organic soil, rock or saprolite. 
HowcNcr, if a low pressure pipe system is 
used, the minimum separation distance 
shall be IS inches. 



(B) Nitrification trenches shall be installed 
with at least 18 inches separating the 
trench bottom and any soil wetness con- 
dition, 'ihis separation requirement for 
soil wetness conditions may be met with 
the use of a groundwater lowering system 
only in Soil Groups I and II, with suitable 
structure and clay mineralogy. However, 
if a low pressure pipe system is used, the 
minimum separation distance shall be 12 
inches. 

(C) Systems shall be installed onl\' on sites 
with uniform slopes less than 15 percent. 
Storm water di\ersions and subsurface 
interceptor drains or swales may be re- 
quired upslope of the system. 

(D) The long-term acceptance rate shall be 
based on the most h>draulically limiting 
soil horizon within 18 inches of the na- 
turally occurring soil surface or to a depth 
one foot below the trench bottom, 
whichever is deeper. The lowest long- 
term acceptance rate for the appUcable 
soil group shall be used for systems in- 
stalled pursuant to this Rule. The long- 
term acceptance rate shaU not exceed tW4 
1.0 gallons per day £er square foot for 
gravity distribution or (-M- (K_5 gallons per 
day j^er square foot for low-pressure pipe 
systems. 

(E) If the fill system uses low-pressure pipe 
distribution, all the requirements of Para- 
graph (a) of this Rule, except Paragraph 
(a)(2)(B), shall apply. Systems with a 
design daily tlow greater than 480 gallons 
per day shall use low-pressure pipe dis- 
tribution. 

(F) Fill material shall have such soil texture 
to be classified as sand or loamy sand 
(Soil Group I) up to the top of the 
nitrification trenches. The final six inches 
of fill used to co\'er the system shall ha\e 
a finer texture (such as Group II, III) for 
the establishment of a vegetative cover. 
Existing fill material shall ha\e no more 
than ten percent by \olume of fibrous or- 
ganics, building rubble, or other debris 
and shall not have discreet lasers contain- 
ing greater than 35 percent of shell frag- 
ments. 

(G) Where fill matcnal is added, the till 
material and the existing soil shall be 
mixed to a depth of six inches below the 
interface. Heavy vegetative cover or or- 
ganic litter shall be removed before the 
additional fill material is incorporated. 

(11) 'Ihe fill system shall be constaicted as 
an elongated benn with the long axis par- 



571 



5:S NORTH CAROLINA REGISTER July 16, 1 WO 



PROPOSED RULES 



allel to the ground elevation contours of 
the slope. 
(I) The side slope of the fill shall not exceed 
a rise to run ratio of 1 :4. However, if the 
first 18 inches below the naturallv occur- 



ring soil surface is Group I soil, the side 
slope of the fill shall not exceed a rise to 
run ratio of 1:3. 

(J) The outside edge of the nitrification 
trench shall be located at least five feet 
horizontally from the top of the side 
slope. 

(K) The fill system shall be shaped to shed 
surface water and shall be stabilized with 
a \egetative cover against erosion. 

(L) The setback requirements shall be 
measured from the projected toe of » -^4 
&i4e olopo. the slope. However, if this 
setback cannot be met, the setback re- 
quirements shall be measured from a 
point five feet from the nearest edge of the 
nitrification trench if the following condi- 
tions are met: 

(i) slopes shall not exceed two percent: 
(ii) the first 18 inches of soil beneath the 
naturallv occumng soil surface shall 
consist of (jroup I soils, and; 
(iii) the lot or tract of land was recorded 
on or before Januar\ _K l')83. 

(\1) I he available space requirements of 
Rule . 1945 of this Section shall apply. 
(2) An existing fill site that does not meet the 
requirements of Paragraph (b)(r) of this 
Rule may be utilized for a sanitar>' sewage 
system if the following requirements are 
met: 

(A) Substantiating data are provided by the 
lot owner (if not readily available to the 
local health department) indicating that 
the fill material was placed on the site 
prior to July 1, 1977. 

(B) The fill material placed on the site prior 
to July 1, 1977 shall have such soil texture 
to be classified as sand or loamy sand 
(Group Ij for a depth of at least 24 inches 
below the existing ground surface. This 
fdl material shall have no more than ten 
percent by volume of fibrous organics, 
building rubble, or other debris. 1 his fill 
shall not ha\e discreet layers containing 
greater than .55 percent of shell fragments. 
Howc\cr, if at least 24 inches of Group I 
fill material was in place prior to July 1, 
1977, additional fill with soil texture clas- 
sified as Group I may be added to meet 
the separation requirements of Paragraph 
(b)(2|(D)of this Rule. 



(C) Soil wetness conditions, as determined 
by Rule .1942(a) in this Section, are 18 
inches or greater below the ground surface 
of the fdl placed on the lot prior to July 
1, 1977. This requirement shall be met 
without the use of a groundwater lowering 
system. 

(D) Low-pressure pipe distribution shall be 
used and shall meet all the requirements 
of Paragraph (a) of this Rule, except 
(a)(2)(B). The long-term acceptance rate 
shall not exceed ft4 0^ gallons per day 
per square foot. Nitrification trenches 
shaU ^ int . taUod with at- Ica i. t 34 inchof . 
f i c ' parating the trench bottom »«4 1 low- 
ever, for existing fill sites with 48 inches 
of Group ]_ soils, conventional nitnfication 
trenches may be installed in lieu of low- 
pressure pipe systems with a maximum 
long-term acceptance rate of _L0 gallons 
per day per square loot. Ihe separation 
distance between the trench bottom and 
any soil wetness condition or any soil ho- 
rizon unsuitable as to soil structure, clay 
mineralogy, organic soil, rock, or saprolite 
shall be 24 inches for low pressure pipe 
systems and 48 inches for con\'entional 
SNstems. This separation requirement 

. may be met by adding additional Group 
I soil, but shall not be met with the use 
of a groundwater lowering system. Where 
fill is to be added, the requirements of 
Paragraphs (b)(1)(C), (F), ((}), (H), f4^ 
(J) and (K), a«4 f4-} the following re- 
quirements shall a}*it* be met: 
(i) the side slope of the till shall not ex- 
ceed a side slope ratio of 1:3, and; 
(ii) the setback requirements shall be 
measured from the proiected toe of the 
slope. 1 lou ever. H this setback cannot 
be met, the setback requirements shall 
be measured from a point li\e feet from 
the nearest edge of the nitnfication 
trench if the following conditions are 
met: 

(I) slopes shall not exceed two percent, 
and; 

(II) the lot or tract of land was re- 
corded on or before Januar\ _L l'')83. 

(F) Ihe available space requirements of 

Rule .1945 of this Section shall apply. 
(F) The design flow shall not exceed 480 

gallons per day. 
(3) Other systems may be installed in fill if the 

requirements of Paragraph (c) of this Rule 

are met. 



Statuloiy Authority G.S. /30A-335ie> and ff). 



5:S NORTH CAROLINA REGISTER July 16, 1990 



572 



PROPOSED RULES 



SI BCHAPTER 18C - WATER SLPPLIES 

SECnON .0100 - PKOTECI ION OF PLBLIC 
WATER SUPPLIES 

.0102 DEFINITIONS 

As used in this Subchapter, the term: 

(1) "Act" means the North Carolina Drinking 
Water Act. 

(2) "Adjacent Water System" means two or 
more water systems that are adjacent and arc 
owned or operated by the same supplier of 
water and that together ser\'e 15 or more 
service connections or 25 or more persons 
daily at least 60 days out of the year. 

(3) "Administrator" means the Administrator 
of the L nited States FnvLronmental Pro- 
tection Agency or an authorized represen- 
tati\'e. 

(4) "Best a\-ailable technology" or "BAT" 
means the best technology, treatment tech- 
niques, or other means which the depart- 
ment fmds, after examination for efficacy 
under field conditions, and not solely under 
laboratory conditions, are available (taking 
cost into consideration). For purpose of 
setting maximum contaminant levels for 
synthetic organic chemicals, any BAT must 
be at least as effective as granular activated 
carbon. 

(5) "Certified Laboratory" shall mean any fa- 
cihty for performing bacteriological, chemi- 
cal or other analyses on water which has 
recei\ed interim or final certification by ei- 
ther the Environmental Protection Agency 
or the division of health services laboratory 
section certification program. 

(6) "Class 1 reservoir" shall mean a reser\oir 
from which water Hows b\' gravity or is 
pumped directly to a treatment plant or to 
a small intervening storage basin and thence 
to a treatment plant. 

(7) "Class II reservoir" shall mean a reservoir 
from which the water tlows by gra\ity or is 
pumped to a Class 1 reservoir prior to final 
entrance to a water treatment plant. 

(8) "Class III reservoir" is a large 
impoundment used for electric power gen- 
eration, flood control, and similar piirposes, 
and which also ser\cs as a source of raw 
water tor a community water system. 

(_22 "Coagulation" means a process using 
coaizuldnt chemicals and mixina bv which 
colloidal and suspended inatenals are desta- 
bilized and aLiglomerated into tlocs. 
( III) (-^ ■■C?ommission" means commission for 
health services as created bv G.S. 143B-142. 



(1 1) "Confluent growlh" means a continuous 
bacterial growth covenng the entire filtration 
area of a membrane filter, or a portion 
thereof, in which bacterial colonies are not 
discrete. 



( 12) {-U^ "Contaminant" means any physical, 
chemical, biological or radiological sub- 
stance or matter in water. 

( 13) "Conventional filtration treatment" means 
a series of processes including coagulation, 
flocculation. sedimentation, and filtration 
resulting iri substantial particulate remo\al. 

( 14) (-14-^ "Cross-connection" shall mean: 

(a) any physical connection between a potable 
water supply system and any other piping 
.system, seWer fixture, container. 'or device, 
whereby water or other liquids, mixtures, 
or substances may flow into or enter the 
potable water supply system; 

(b) any potable water supply outlet which is 
submerged or is designed or intended to 
be submerged in non-potable water or in 
any source of contamination or; 

(c) an air gap, providing a space between the 
potable water pipe outlet and the flood 
level rim of a receiving vessel of less than 
twice the diaineter of the potable' water 
pipe. 

( 1 5 ) f4-3^ "Communit\" Water System intake" 
shall mean the structure at the head of a 
conduit into which water is diverted from a 
stream or reservoir for transmission to water 
treatment facilities. 

( lb) "CI" or "Ctcalc" [s the product of "resi- 
dual disinfectant concentration" (C) in mg I 
determined before or at the first customer, 
and the corresponding jJisinfectant contact 
time" (1) in minutes, i.e. 



■1 



If 



"C" X 

public water s\slem applies disinfectants at 
more than one point prior to the first cus- 
tomer, h must determine the CI of each 
disinlcct:int sequence before or a[ the first 
customer to determine the total percent in- 
acti\ation or "t(^tal inacti\ ation ratio". In 
determining the total inacti\:ilion ratio, the 
public water s\ stem must delennine the res- 
idual disintectant concentration of each dis- 
infection sequence and correspondrng 
contact time before anv subsequent disin- 
fection application point(s). "C' 1')^).^)" is 
the C r \akie required tor '-)^>.'-) percent 
(3-loiz) inactnation ot (iiardia lamblia c\"sts. 
CV'^M:^ for a \anetv 



_ of disinfectants and 

conditions appear in fables 1.1-1 6.2. 1 . and 
3J_ oi £1 C.l R. sM41. 74(b)(3) which are 
hereb\ adopted bv reference in accordance 
with Ci.S. ^15l)B- 14(c). 
CI calc 



573 



5:,S NORTH CAROLINA REGISTER Jitlv 16.1990 



PROPOSED RULES 



CT99.9 
is the inactivation ratio. The sum of the 
inactivation ratios, or total inactivation ra- 
tio shown as: 

(CTcalc) 
(€199.9) 
IS calculated by adding together the inacti- 
vation ratio for each disinfection sequence. 
A total inactivation ratio equal to or greater 
than 1.0 IS assumed to provide a 3-log in- 
activation of Cjiardia lamhlia c\sts. 
( 17) f44^ "Department" means the Department 
of Human Resources as created by G.S. 
143B-136. 
( IS) ''Diatomaceous earth filtration" means a 
process resulting in substantial particulate 
remov;d in which: 

(a) a precoat cake of diatomaceous earth filter 
media is deposited on a support mem- 
brane (septum), and 

(b) while the water is filtered bv passing 
through the cake on the septum, addi- 
tional filter media know n as body feed is 
ccmtinuousK' added to the feed water to 
maintain the permeability of the filter 
cake. 

( IQ) 'Direct filtration" means a series of proc- 
esses includint; coaiiulation and tiltration but 



excludin2 sedimentation 



resulting in 



sub- 



stantial particulate remo\al. 

( 20 ) f44-^ "Disinfectant" means any o.xidant, in- 
cluding but not limited to chlorine, chlorine 
dio>dde, chloramines, and ozone added to 
water in any part of the treatment or dis- 
tribution process, that is intended to kill or 
inactivate pathogenic microorganisms. 

(21) "Disinfectant contact time" ("T" in CT 
calculations) means the time in minutes that 
it takes for water to mo\e from the point of 
disinfectant application or the pre\ious 
point of disinlectant residual measurement 
to a point before or at the point where resi- 
dual disinfectant concentration ("C") is 
measured. Where only one "C" is meas- 
ured. "1 " [s the time in minutes that it lakes 
for water to move from the point of 
disinfectant application to a point before or 
at where residual disinfectant concentration 



("C") IS measured. 
"C" is measured, "'I' 



Where more than one 



(a) for the tirst measurement of "€". the time 
m minutes that U takes tor water to mo\e 
Irom the tirst or onl\ point o{_ disinfectant 
application to a point before or at the 
point where the first "C" is measured: and 

(b) for subsequent measurements of "C" the 
time in minutes that h takes for water to 
mo\e from the previous "C ' measure- 



ment point to the "C" measurement point 
for which the particular " 1" is being cal- 
culated. 

Disinfectant contact time in pipelines must 
be calculated based on "plug flow" by di- 
viding the internal volume of the pipe bv 
the maximum hourly flow rate through 
that pipe. Disinfectant contact time within 
mixing basins and storage reser\'oirs must 
be determined by tracer studies or an 
equivalent demonstration. 

(22) "Disinfection" means a process which in- 
activates pathogenic organisms in water bv 
chemical oxidants or equivalent agents. 

(23) "Domestic or other non-distnbution sys- 
tem plumbing problem" means A colitbrm 
contamination problem in a public water 
system with more than one service con- 
nection that is limited to the specific sen,ice 
connection from which the eoliform-positive 
sample was taken. 

(24) f-l-i} "Dose equivalent" means the product 
of the absorbed dose from ionizing radiation 
and such factors as account for differences 
in biological effectiveness due to the type of 
radiation and its distribution in the body as 
specified by the International Commission 
on Radiological Units and Measurements 
(ICRL). 

(25) "thecal coliform" means bacteria consist- 
ently found in the intestine of man and cither 
warm blooded animals which are not 
normalh disease producing but ser\e as irv 
dicators of recent fecal contamination. Ihev 



are 



members 



the 



family 



Hnterobacteriaceae, type Cienus F'scherichia. 

(26) f-1-6^ "I'ederal act" means the Safe Drinking 
Water /\ct of 1974, as amended, cited as P.L. 
93-523. 

(27) f-(^ "Federal agency" means an>' depart- 
ment, agency or instrumentality of the 
Lmted States. 

(28) "filtration" means a process for remcning 
particulate matter frcmi water b\ passage 
through porous media. 

(2Q) "Mocculation" means a process t_o en- 
hance agglomeration iir collection of smaller 
floe particles into larger, mc^re easih' 
settleable particles through gentle stirnng by 
h\draulic or mechanical means. 

(30) f-Hv^ "Cjross alpha particle acli\ity" means 
the total radioactivit\ due to alpha particle 
emission as inferred from measurements on 
a dr\" sample. 

(31 ) (4^ "Gross beta particle activity" means 
the total radioactivity due to beta particle 
emission as inferred from measurements on 
a dr\' sample. 



5:S NORTH CAROLINA REGISTER July 16, 1990 



574 



PROPOSED RULES 



surface water" means an\' water beneath 



(32) "Cjround water under the direct influence 

of ; 

the surface ot the ground with: 



sjiiniticant occurrence of insects or other 
macrooriianisms, 



(bi 



alizae. or larue-diameter 

pathoi^ens such as (iiardia lamhha. or 

sinniticant and relatnelv rapid shifts in 
water charactenstics such as turbidity, 
temperature, conductivity, or qJJ which 
closeK correlate to climatolopcal or sur- 
face water comlitions. 
IJirect influence must be determined for 
indi\ idual sources in accordance with cri- 
teria established b\ the [department. The 
Department determination of direct influ- 
ence ma\ be based on site-specit'ic meas- 
urements of water qualit\ and or 
documentation of well construction char- 



acteristics and t;eoloiiv with field e\"alu- 
ation. 



(33) (r24+ "Halogen" means one of the chemical 
elements chlorine, bromine or iodine. 

(34) "I eaonella" means a !:enus of bactena. 
some species of which base caused a t\ pe 
o[ pneumonia called 1 eeionnaires Disease. 

(35) (-34-+ "Man-made beta particle and photon 
emitters" means all radionuclides emitting 
beta particles and or photons listed in 
"Maximum Permissible Bod\ FJurdens and 
Maximum Permissible Concentration of 
Radionuclides in Air or Water for Occupa- 
tional Exposure," NBS HANDBOOK 6Q, 
except the daughter products of thorium 
232, uranium 235 and uranium 23S. 

(36) (r34+ ".Maximum contaminant level" means 
the maximum permissible le\'el of a con- 
taminant in water which is deU\ered to the 
free flowing outlet of the ultimate user of a 
public water system, except in the case of 
turbidity where the maximum permissible 
level is measured at the point of entr> to the 
distribution s>5tem. Contaminants added 
to the water under circumstances controlled 
by the user, except those resulting from cor- 
rosion of piping and plumbing caused by 
water quality, are excluded from this defi- 
nition. 

(3") "Maximum Contaminant le\el goal" 
means the maximum le\el of a contaminant 
in drinkine water at_ which no known or an- 
ticipated adverse etiect on the health oi. per- 
sons w ould occur, arul which alKw. s an 
adequate maran of safety . 1 xceedini: the 
maximum contaminant level eoal does not 
result in an enforceable violation by a sup- 
plier of water. 

(3S) frrrU '.Maximum Total Trihalomethane 
Potential (.MlPi" means the maximum 



concentration of total trihalomethanes 
produced in a given water containing a 
disinfectant residual after 7 days at a tem- 
perature of 25! C or above. 

(39) (34^ "National Primary' Drinking Water 
Regulations" means primary' drinking water 
regulations promulgated by the administra- 
tor pursuant to the federal act. 

(40) "Near the First service connection" means 
at one ot^ the 21) percent of aH ser\ice con- 
nections in the entire system that are nearest 
the water supply treatment facility, as meas- 
ured by water transport time within the dis- 
tnbution s\ stem. 

(41 ) (-54+ "Non-potable water supply" shall 
mean waters not approved for drinking or 
other household uses. 

(42) (^4f "Person" means an individual, corpo- 
ration, company, association, partnership, 
unit of local government, state agency, fed- 
eral agency, or other legal entity. 

(43) Q^ "Picocurie (pCi|" means that c|uantity 
of radioactive material producing 2.22 nu- 
clear transformations per minute. 

(44) "Point ot^ disinfectant application" is the 
point where the disinteclant is applied and 
water dow nstream of that point is not sub- 
ject to recontamination by surface water 
ninot'f. 

(45) (-^ "Point-of-Fntrv' treatment device" is a 
treatment device applied to the drinking 
water entering a house or buildmg for the 
purpose of reducing contaminants in the 
dnnking water distributed througliout the 
house or building. 

(46) (-50-f "Point-of-use treatment device" is a 
treatment device applied to a single tap used 
for the purpose of reducing contaminants in 
drinking water at that tap. 

(47) (ri% ""Potable water supply" shall mean 
water which is approved for dnnking or 
other household uses. 

(4^ l^M '"Public water system" 
(a) "Public Water System" means a system, 
including an adjacent water svstem. for 
the provision to the public of piped water 
for human consumption if the system 
serves 15 or more scr\'ice connections or 
regularly serves an average of 25 or more 
persons daily at least 60 davs out of the 
year. The term Includes: 

(i) any collection, treatment, storage, and 
distnbution facility under control of the 
operator of such svstem and used prima- 
rily in connection with such svstem; and 

(ii) any collection or pre-treatment storage 
facility not under such control which is 



-■). .■) 



5:S yORTH CAROLL\A REGISTER July 16. 1990 



PROPOSED RULES 



(b) 



used primarily in connection with such 
system. 

A public water system is either a "com- 
munity water system," a "non-community 
water system" or a "non-transient, non- 
community water system": 
(i) "Community Water System" means a 
public water system which serves 15 or 
more service connections or which regu- 
larly serves at least 25 year-round resi- 
dents, 
(ii) "Non-Community Water System" 
means a public water system v\hich is not 
a community water system, 
(iii) "Non-transient, non-community water 
system" means a public water system that 
is not a community water system and that 
regularl\' serves at least 25 of the same 
persons for six or more months per year. 

{^^ "Raw water" shall mean surface water 

or ground water which because of 
bacteriological quality, chemical quality, 
turbidity, color, or mineral content makes it 
unsatisfactory as a source for a community 
water system without treatment. 

(50) f^rH "Raw water reservoir" shall mean a 
natural or artificial impoundment used for 
the primar>- purpose of storing raw water to 
be subsequently treated for use as a source 
for a community water system. 

(51) frW^ "Rem" means the unit of dose equiv- 
alent from ioni/ing radiation to the total 
body or any internal organ or organ system. 
A "millirem (mrem)" is l/lOOfl of a rem. 

(52) "Residual disinlectant cc^ncentralion" 
("Q" in ( 1 calculations) means the con- 
centration of disinfectant measured in miz 1 



(4<5) 



in a representati\e sample o^ water. 
(5.'^) f4->} "Sanitary' sun.ey" means an on-site 
re\ iew of the water source, facilities, equip- 
ment, operation and maintenance of a pub- 
he water system for the purpose of 
evaluating the adequacy of such source, fa- 
cilities, equipment, operation and mainte- 
nance for producing and distributing safe 
drinking water. 

( 54 ) fi^ "Secretary" means the executi\e olTicer 
ot the Department of Human Resources or 
an authorized agent. 

(55) "Sedimentation ' means a process for re- 
moval ot^ solids be lore tiltralion by gravitv 
or separatKMi. 

(56) "Slow sand liltralion ' means a process 
invohmg passage of raw water through a 
bed ot^ sand at low velocity (irenerallv less 
than 



(1.4 m h) 



m substantial 



(57) f:^ "Standard sample" means the aliquot 
of finished drinking water that is examined 
for the presence of coliform bacteria. 

(58) (4^ "Supplier of water" means any person 
who owns, operates, or controls a public 
water system. 

(59) "Surface water" means all water which is 
open to tjie atmosphere and subject- to sur- 
face runoff. 

(611) "Svstem with a single service connection" 



means a svstem which supplies drinkini 



water to consumers via a single ser\'ice Ime. 

(61 ) " loo numerous to count" means that the 
total number of bactenal colonies exceeds 
2011 on a 47-inm diameter membrane filter 
used for colitomi detection. 

(62) f4% "Total tnhalomethanes" (TTIIM) 
means the sum of the concentration in 
milligrams per liter of the tnhalomethane 
compounds ctrichloromethane 
(chloroform), dibromochloromethane, 
bromodichJoromethane and 
tribromomethane (bromoform) S, rounded 
to two significant figures, mechanisms. 

(63) f4ft| "Treatment technit]ue requirement" 
means a requirement of the North Carolina 
Drinking Water [Regulations which specifies 
for a contaminant a specific treatment tech- 
nique which leads to a reduction of the level 
of such contaminant sufficient to comply 
with the requirements of this Section. 

(64) f44-)' "Trihalomethane ' ( TIl.M) means one 
of the family of organic compounds, named 
as derivatives of methane, wherein three of 
the four hvdrogen atoms in methane are 
each substituted by a halogen atom in the 
molecular structure. 

(65) f4i)- "Unit of local government" means a 
county, city, consolidated city-county, sani- 
tarv' district, or other local political subdivi- 
sion, authority, or agency of local 
government. 

(66) (44} "Pertbrmance evaluation sample" 
means a reference sample provided to a lab- 
oratory for the puqiosc of demonstrating 
that the laboratory can successfully analyze 
the sample within limits o{ periomiance 
specified by the department. The true value 
of the concentration of the reference material 
is unknown to the laboratorv' at the time of 
the analysis. 

(67) "Virus" means a v irus o\_ lecal origin which 
is infectious to humans bv vvaterborne 
transmission. 

(68) "Waterbome di_ 



outbreak" mi 



particulate removal bv physical and biolog- 
ical mechanisms. 



the 

significant occurrence of acute infect uhis ill- 
ness, epidcmioloizicallv assi^ciated w ith the 
ingestion o[ water from a public water svs- 



5.-,9 NORTH CAROLINA REGISTER July 16, 1990 



576 



PROPOSED RULES 



tem \shich |s deficient in treatment, as de- 
termined bv the appropriate local or 
[department agency. 

Authoritv G.S. I30A-3II ihroui^h I30A-327: P.L. 
93-523:'4Q C.F.R. 141. 



SKCnON .1500 - W Al KR Ql Al ITY 
SI ANDAKOS 

.i5(»jt MK Komoi ()(;irAi, com aminam 

SAMIM.INi; AM) ANALYSIS 
(KKI'KAI KD) 
.1504 MAXIMI M MK ROBIOIOCK Al. 

COM AMINAM l.tVKLS (KKl'EAl.KO) 

Auihoritv G.S. I30A-3I5: P.I.. 93-523: 40 C.F.R. 
141. 

.1505 TIRBIDITV SAMPLING AM) ANAI.\SIS 

(f) I he requirement? of this Rule .ipplv to an 
unfiltercd public water ssstem until Heccmher 
3lf ffM_ 11 the Dep^'ttment has determined that 
an unlillered s\ stem must install fillralion. the 
maximum contaminant level applies until June 
2'-). h)')3 or imlil filtration is installei-l u hichever 
IS later, I he requirements of this Rule apph to 
a hltered public water s\ stem until June 2'). I')')3. 

Authoritv G.S. 130A-3I5: P.L. 93-523: 40 C.E.R. 
141. 

.1506 MAXIMI M ( OM AMINAM I. EN ELS 
FOR n RBIDITV 

fa) 1 he maximum contaminant levels for 
turbidity arc applicable to both conimunit\ water 
systems and non-community water systems using 
surface water sources in whole or in part. The 
maximum contaminant levels for turbiditv in 
(.Innkinii water, measured at a representative 
entrv' point(s) to the distribution svstem, are: 

(1) One turbidity unit ('\'\5). as determined 
by a monthlv average pursuant to .1623 
of this Section except that five or fewer 
turbidity units may be allowed if the sup- 
plier of water can demonstrate to the de- 
partment that the higlier turbidity docs 
not do any of the follc>vving: 

(.A) ftH interfere with disinfection, 
( 1?) f4*f prevent maintenance of an effective 
disinfectant agent througliout the distnb- 
ution system, or 
(C) fe)- intertere with microbiological deter- 
minations. 

(2) [ive turbiditv units based on an average 
for two consecutive da\s pursuant to 
.1623 of this Section. 

(b) I lie maximum contaminant level lor 
turbiditv applies to^ an unlilteivd public water 



svstem until December 30. IQ^M. If the Depart- 
ment has determined that an unfiltercd svstem 
must install filtration, the maximum contaminant 
level applies until .lune 2'^. 1^'^)3 or until tilt rat ion 
is installed whichever is later. 1 he maximum 



contaminant level for turbiditv applies to a fil- 
tered public water svstem until .lune 2'^. l')')3. 

Authoritv G.S. I30A-315: P.L. 93-323: 40 C.F.R. 
I4L 

.152.^ PI BLIC NOTICE 

(a) The supplier of water shall pro\ ide notice 
to consumers served by a public water system 
when the system fails to comply with a maxi- 
mum contaminant level or treatment technique 
established bv' this Subchapter or which fiils to 
complv with the requirements of any schedule 
prescnbed pursuant to a vanance or exemption 
granted under this Subchapter as follows: 

( 1 ) For a community water system: 

(D) For violations of the maximum con- 
taminant levels of contaminants specified 
by the [department as piising an acute risk 
to human health and including: 
(i) t++f violation of the maximum contam- 
inant level for nitrate as defined in 40 
C.F.R. §141.1 1(b) and determined ac- 
cording to 40 C.F.R. §14 1.23(d) which 
are herebv adopted bv reference pursu- 
ant to G.S. l,-S0[M4(c); 
(li) viokition of the maximum contam- 
inant level for total colilonns. when 
fecal colitorms or 1__ coli are jiresent m 
the water dislnbution sv stem, as speci- 
ticd in Rule . I ."i 34(b) oi llli:: Section: 
and 
(iii) occurrence of a water borne disease 
outbreak ni an unfiltered sy stem subject 
to the requirements o[ l.^.\ \C.\C 1 SC 
■ 2001 through .21106 ot' the Subchapter, 
after December 30, I'^'M: 
notice shall be given by furnisliing a ctipy 
of the notice to the radio and television 
stations serving the area of the communitv 
water svstem as soon as possible but in 
no case later than 72 hinirs after the vio- 
lation. 

Authoritv G.S. I30A-315: PL. 9.^-323: 40 C.F.R. 
141. 

.1525 RKPORIINC Kl Ol IRKMKN IS 

(b) Fxcept where a shorter reportmL! penod is 
specified in this part, the supplier of water shall 
report to the [)epartment within 4S hours the 
failure to comply with anv reizulation of -W 
\C.\(^ 4i4^ -4A+a ilmuidi "44a4 l.\\ \C.\C^ 



577 



5;,V NORTH CAROLINA REGISTER July 16,1990 



PROPOSED RULES 



18C . 1 50 1 throu.izh . 1 534 of this Section (includ- 
ing failure to comph with monitoring requirc- 
mL-nts). 

Authoritv G.S. I30A-3I5; P.L. 93-523; 40 C.F.R. 
141. 

.1532 VARIANCES AND EXEMPTIONS 

Variances and exemptions from a maximum 
contaminant level or required treatment tech- 
nique ma\ be requested h\ a public water s\slem 
and may be siranted by the secretary in accord- 
ance with W^ NCAC W» rim^ thrtumh 0^4-1^ 
15A NCAC 18C 1601 through .1614. except that 
variances or exemptuins trom the maximum 
C(ontaminant level tor total colitorms and van- 
ances from an\ of the treatment technique re- 
quirements of _[5A NCWC ISC .21101 throuizh 
.2006 ma\ not be tirantcd. 



Authoritv G.S. I30A-3I I through /30A-327; P.L. 
93-3:3: 40 C.F.R. I4L 

.153J COLIFOKM SAME'MNG 

(a) A supplier of water shall collect total 
coliform samples at sites which are representati\e 
of water throughout the distribution system ac- 
cording to a written sample siting plan. Ihese 
plans are subject to re\iew and re\ision by the 
Department. 

(b) The monitoring frequency for total 
colitbnns for community water systems is based 
on the population ser\ed by the system, as fol- 
lows: 

Population ser\ed Number of 

Samples 
per month 

1 to 1000 1 

1.001 to 2.500 2 

2,501 to 3.300 3 

3.301 to 4.100 4 

4.101 to 4.900 5 

4,901 to 5,800 6 

5,801 to 6,70n 7 

6.701 to 7,600 8 

7.601 to 8,500 9 

8,501 to 12,900 10 

12,901 to 17,200 15 

17.201 to 21.500 20 

21,501 to 25,000 25 

25,001 to 33,000 30 

33.001 to 41,000 40 

41.001 to 50,000 50 

50.001 to 59,000 60 

59.001 to 70,000 70 

70.001 to 83,000 80 

83.001 to 96,000 90 



96,001 to 130,000 100 

130,001 to 220.000 120 

220.001 to 320,000 150 

320,001 to 450,000 180 

450,001 to 600,000 210 

600,001 to 780,000 240 

780.001 to 970,000 270 

970,001 to 1,230,000 300 

1,230,001 to 1,520,000 330 

1,520.001 to 1,850,000 360 

1,850,001 to 2,270,000 390 

2,270,001 to 3,020,000 420 

3,020,001 to 3,960,000 450 

3,960,001 or more 480 

(c) The monitoring frequency 'for total 
coUforms for all non-community water s\ stems 
is as follows: 

( 1 ) A non-community water s_n stem using 
only ground water, except ground water 
under the direct influence of surface water, 
and ser\'ing 1,000 persons or fewer must 
monitor each calendar quarter that the 
system provides water to the public. 

(2) .A non-community water system using 
only ground water, except ground water 
under the direct intluence of suiface water, 
and serving more than 1.000 persons dur- 
ing any month must monitor at the same 
frequency as a like-sized community water 
SNstem. as specified in Paragraph (b) of 
this Rule. 

(3) A non-community water system using 
surface water, in total or in part, must 
monitor at the same frequency' as a like- 
si/,ed community water system, as speci- 
fied in Paragraph (b) of this Rule, 
regardless of the number of persons it 
serves. 

(4) A non-communit>' water s\stem using 
ground water under the direct influence 
of surface water must monitor at the same 
frequency as a like-si/ed community water 
system, as specified in Paragraph (b) of 
this Rule. The system must begin moni- 
toring at this frequency' beginning six 
months after the Department determines 
that the ground water is under the direct 
intluence of surface water. 

(d) A public water system shall collect samples 
at regular time intervals thrt)ughout the month 
unless a system uses ground water, except ground 
water under the direct influence of surface water, 
and ser%es 4.900 persons or fewer, wliich may 
collect all required samples on a single day if they 
are taken from different sites. 

(e) A public water system that uses suiface 
water or iiround water under the direct influence 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



5"<V 



PROPOSED RULES 



of surface water, and does not practice filtration 
in compliance with 15A NCAC 18C .2001 
through .2006 shaU collect at least one sample 
near the first service connection each day the 
turhiditv level of the source water, measured as 
specified in 15A NCAC 18C .2006(b), exceeds I 
Srr. This sample must be analyzed for the 
presence of total coliforms. When one or more 
turbidity measurements in any day exceed 1 
NTl", the svstem must collect this coliform 
sample within 24 hours of the first exceedance, 
unless the Department determines that the sys- 
tem, for logistical reasons outside the system's 
control, cannot have the sample analyzed within 
30 hours of collection. Sample results from this 
coliform monitoring must be included in deter- 
mining compliance with the maximum contam- 
inant fevel for total coliforms in 15.\ NCAC 18C 
.1534. 

(f) Special purpose samples, such as those 
taken to determine whether disinfection practices 
are sufficient following pipe placement, replace- 
ment, or repair, shaU not be used to determine 
compliance with the maximum contaminant 
level for total colifonns in 15.^ NCAC 18C 
.1534. Repeat samples taken pursuant to Para- 
graph (g) of this Rule are not considered special 
purpose samples, and shall be used to determine 
compliance with the maximum contaminant 
level for total coliforms in 15A NCAC ISC 
. 1 534. 

(g) If a routine sample is total coliform- 
positive, the public water svstem shall collect a 
set of repeat samples within 24 hours of being 
notified of the positi\e result. A system which 
collects more than one routine sample month 
shall coUect no fewer than three repeat samples 
for each total coliform-positive sample found. 
.-\ s\ stem which collects one routine 
sample month or fewer shall collect no fewer 
than four repeat samples for each total coliform- 
positi\e sample found. The Department may 
extend the 24-hour Limit on a case-by-case basis 
it the system has a logistical problem in collecting 
the repeat samples within 24 hours that is beyond 
its control. The Department will specify in the 
extension how much time the system has to col- 
lect the repeat samples. Repeat samples shall be 
collected as foUows: 

( 1 ) The s\ stem must collect at least one rejxiat 
sample from the sampling tap where the 
original total coliform-positi\e sample was 
taken, and at least one repeat sample at a 
tap within ^\\c senice connections up- 
stream and at least one repeat sample at 
a tap within five ser\ice connections 
downstream of the original sampling site. 
It a total ci)litonn-positi\ e sample is at the 



end of the distribution system, or one 
away from the end of the distribution 
system, the Department may waive the 
requirement to collect at least one repeat 
sample upstream or downstream of the 
original sampling site. 

(2) The system must collect all repeat samples 
on the same day, except that the Depart- 
ment may allow a system with a single 
service connection to collect the required 
set of repeat samples o\er a four-day pe- 
riod or to collect a larger \olume repeat 
sample(s) in one or more sample contain- 
ers of any size, as long as the total \olume 
collected is at least 400 ml (300 ml for 
systems which collect more than' one rou- 
tine sample month). 

(3) If one or more repeat samples in the set 
is total colifonn-positi\e, the public water 
system must collect an additional set of 
repeat samples in the manner specified in 
Paragraphs (g)(1) - (3) of this Rule. The 
additional samples must be collected 
within 24 hours of being notified of the 
positi\e result, unless the Department ex- 
tends the limit as pro\ided in Paragraph 
(g)(r) of this Rule. The s\stem must re- 
peat this process until either total 
coliforms are not detected in one complete 
set of repeat samples or the system deter- 
mines that the maximum contaminant 
le\el for total coliforms in 15.\ NC.AC 
18C .1534 has been exceeded and notifies 
the Department. 

(4) If a system collecting fewer than five rou- 
tine samples month has one or more total 
coliform-positive samples and the De- 
partment does not invalidate the 
sample(s) under Paragraph (h) of this 
Rule, it must collect at least fise routine 
samples during the next month the system 
provides water to the public, except that 
the Department may waive this require- 
ment if the conditions of 40 C.P.R. 
§141.21(b)(5)(i) or (ii) arc met, which is 
hereby adopted by reference in accordance 
with G.S. 150B-i4(c). The Department 
may not wai\e the requirement for a sys- 
tem to collect repeat samples in Para- 
graphs (g)(1) - (4) of tliis Rule. 

(5) After a s\stem collects a routine sample 
and before it learns the results of the 
analysis of that sample, if it collects an- 
other routine sample(s) from within fi\c 
adjacent service connections of the initial 
sample, and the initial sample, after anal- 
ysis, is found to contain total colifonns, 
then the s\"stem ma\ count the subse- 



5' 9 



5:S i\ORTH CAROLLS'A REGISTER July 16,1990 



PROPOSED RULES 



quent samplc(s) as a repeat sample instead 

(if as a routine sample. 

(6) Results of all routine and repeat samples 

not invalidated by the Department must 

be included in determining compliance 

with the maximum contaminant level for 

total coliforms in this Rule. 

(h) A total colifomi-positive sample invalidated 

under this Paragraph does not count towards 

meeting the minimum monitoring reciuirements 

of this Rule. Samples are invalidated as follows: 

(1) The Department may invalidate a total 
coliform-positive sample in accordance 
with 40 C.I-.R. §141.21(cj(l) which is 
hereby adopted bv reference in accordance 
with G.S. 15()B-"l4(c). A copy of the 
procedure is available from the Public 
Water Supplv Section, I'.O. IJox 27687, 
Raleigh, N.C. 27611-7687. 

(2) A laboratory shall in\alidate a total 
colitbrm sample, unless total colifomis are 
detected, if the sample produces a turbid 
culture in the absence of gas production 
using an anahlical method where gas for- 
mation is examined (e.g., the Multiple- 
lube {-ermentation lechnique), produces 

a turbid culture in the absence of an acid 
reaction in the Presence- Absence (P-A| 
(.\)liform lest, or exhibits confluent 
growth or produces colonies too numer- 
ous to count with an analytical method 
using a membrane filter (e.g., .Membrane 
lilter lechnique). If a laboratory in\ali- 
dates a sample because of such interfer- 
ence, the system must collect another 
sample from the same location as the ori- 
ginal sample within 24 hours of being no- 
tified of the interference problem, and 
ha\e it analyzed for the presence of total 
coliforms. The s\'stem must continue to 
re-sample within 24 hours and have the 
samples anahzed until it obtains a valid 
result. The Department may waive ths 
24-hour time limit on a case-by-case basis. 
(i) Public water systems which do not collect 
fi\e or more routine samples per month shall 
undergo an initial sanitar\' sun.e\ by .lune 29, 
U)'M for community public water s\ stems and 
.lunc 2'), 1999 for non-community water systems. 
I hereafter, systems must undergo another sani- 
tary sur\ey e\ery fne years, except that non- 
community water s\stems using only protected 
and disinfected ground water as defined by the 
Department, shall undergo subsec]ucnt sanitary 
surveys at least c\er\ ten years after the initial 
.sanitary survey. The Department will re\ iew the 
results ot each sanitar)" suncy to determine 
whether the existing monitoring frequency is ad- 



equate and u hat additional measures, if any, the 
system needs to undertake to improve drinking 
water quaUty. In conducting a sanitar>' survey 
of a system using ground water, information on 
sources of contamination within the delineated 
wellhead protection area that was collected in the 
course of developing and implementing an 
I- PA-appro\ed wellhead protection program un- 
der the federal Safe Drinking Water Act §1428 
should be considered instead of collecting new- 
information, if the information was collected 
since the last time the system was subject to a 
sanitaPi' survey. Sanitar)' sur\'eys will be per- 
formed by the Department or an agent approved 
by the Department. 1 he supplier is responsible 
for ensuring the survey takes place. 

(i) If any routine or repeat sample is total 
coliform-positive, the supplier of water shall an- 
alyze that total coliform-positive culture medium 
to determine if fecal coliforms are present, except 
that the supplier of water may test for E. coli in 
lieu of fecal coliforms. If fecal coliforms or E. 
coli are present, the supplier of water shall notify 
the Department by the end of the day when the 
system is notified of the test result. If the s\stem 
is notified of the result after the Department of- 
fice is closed the supplier shall notify the De- 
partment before the end of the next business day. 
The Department may allow a public water sys- 
tem, on a case-by-case basis, to forego fecal 
coliform or E. coli testing on a total coliform- 
positive sample if that system assumes that the 
total coliform-positive sample is fecal coliform- 
positive of E. Coli-positi\e. Accordingly, the 
system shall notify the Department as specified 
in this Paragraph and the provisions of 15A 
NCAC 18C .1 534 apply. 

(k) The standard sample volume required for 
total coliform analysis, regardless of analytical 
method used, is 100 ml. Only the presence or 
absence of total coliforms is determined. A de- 
termination of total coliform density is not re- 
quired. Total coliform analyses shall be 
performed in accordance with anahlical methods 
for total coliform in 40 C.E.R. §141.2I(f) which 
is hcreb\ adopted b\ reference in accordance w ith 
(j.S. 150B-14(c). A list of the.se methods and the 
procedure is available from the Public Water 
Supply Section, P.O. Box 276S7, Raleigh, NC 
27611-76S7. Eecal coliform analyses in accord- 
ance with analytical methods for fecal colifonn 
in 40 C.I-.R. 141.21(11 are hereby adopted- by 
reference in accordance with G.S. 15()B- 14(c). 
A list of these methods and the procedure is 
available from the Public Water Supplv Section, 
P.O. Box 27687, Raleigh, NC 27611-7687. 

(1) /\ public water system which has exceeded 
the maximum contaminant le\el tor total 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



5,S0 



PROPOSED RULES 



coliforms in 15A NCAC 18C .1534 shall report 
the violation to the Department no later than the 
end of the next business day after it learns of the 
violation, and notify the public in accordance 
with 15A NCAC ISC .1523. A public water 
system which has failed to comply with a 
coliform monitoring requirement, including the 
sanitary' survey requirement, must report the 
monitoring violation to the Department with ten 
days after the system discovers the violation, and 
notify the public in accordance with 15A NCAC 
18C .1523. 

Authontv G.S. I30A-3I5: P.L. 53-523; 40 C.F.R. 
141. 

.15.U M WlMl M COM AMIN AM I K\ FI.S 
FOR coin ORM BACTERIA 

(a) The ma.ximum contaminant le\'c! for 
microbiological contaminants is based on the 
presence or absence of total colifonns in a sam- 
ple, rather than coLifonn density and shall be de- 
termined as follows: 

(1) for a system which collects at least 40 
samples for month, if no more than 5.0 
percent of the samples collected during a 
month are total coliform-positi\e, the 
system is in compliance with the maxi- 
mum contaminant le\el for total 
colilbrms; 

(2) for a system which collects fewer than 40 
samples month, if no more than one 
sample collected during a month is total 
coliform-positive. the system is in com- 
pliance with the maximum contaminant 
level for total coliforms. 

(b) .Any fecal coliform-positive repeat sample 
or E. coli-positivc repeat sample, or any total 
coliform-positive repeat sample following a fecal 
coliform-positive or E. coli-positive routine sam- 
ple constitutes a \ iolation of the maximum con- 
taminant le\el for total coliforms. For purposes 
of the public notification requirements in 15A 
NCAC 18C .1523, tliis is a violation that may 
pose an acute risk to health. 

(c) A public water s\stem must detcnnine 
compliance with the ma.ximum contaminant 
level for total coliforms in Paragraphs (a) and (b) 
of this Rule for each month in which it is re- 
quired to monitor for total colifonns. 

(d) The SecretaPi' hereby identities the follow- 
ing as the best technology, treatment techniques, 
or other means available for achie\Lng compli- 
ance with the maximum contammant le\el for 
total coliforms in Paragraphs (a) and (b) of this 
Rule: 



(1) protection of wells from contamination 
by coliforms by appropriate placement 
and construction; 

(2) maintenance of a disinfectant residual 
throughout the distribution system: 

(3) proper maintenance of the distribution 
system including appropriate pipe re- 
placement and repair procedures, main 
(lushing programs, proper operation and 
maintenance of storage tanks and reser- 
voirs, and continual maintenance of posi- 
tive water pressure in all parts of the 
distribution system; 

(4) filtration and or disinfection of surface 
water, as described in 15A NC AC^ 18C 
.2001 through .2006, or disinfection of 
ground water using strong oxidants such 
as chlorine, chlorine dioxide, or ozone; or 

(5) the deselopment and implementatitm of 
an EF'A-approved State Wellhead Pro- 
tection Prosiram under §1428 of the Safe 
Drinking Water Act, 42 L'.S.C. 300f, et 
seq. 

(e) Maximum contaminant le\el goals for 
microbiological contaminants are as follows: 
Contaminant MCLG 



( 1 ) Giardia lamblia 

(2) Viruses 

(3) I egipnella 



zero 
zero 
zero 



Authontv G.S. /30A-3/5; P. I.. 93-523: 40 C.F.R. 
141. 

SECTION .2000 - Ell IRAIION AND 
DISINEEC HON 

.2001 (;eneral REQi iremen is 

(a) bach public water s\stem with a surface 
water source or a ground water source under the 
direct intluence of surface water must pro\ide 
treatment of that source water which complies 
with these treatment technicjue recjuirements. 
1 he treatment technique requirements consist of 
installing and properly operating water treatment 
processes which reliabh' achie\e: 

(1) at least 99.9 percent (3-log) remo\al 
and or inacti\ation of (jiardia lamblia 
cysts between a point where the raw water 
is not subject to recontamination b> sur- 
face water runoff and a point downstream 
before or at the first customer: and 

(2) at least 99.99 percent (4-log) removal 
and or inacti\ation of \iruses between a 
point where the raw water is not subject 
to recontamination by surface water run- 
off and a point downstream before or at 
the first customer. 



5Sl 



5:8 NORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



(b) A public water system using a surface water 
source or a ground water source under the direct 
influence of surface water is considered to be in 
compliance with the requirements of Paragraph 
(a) of this Rule if: 

(1) it meets the requirements for avoidina 
nitration in 15A NCAC 18C .2005 and 
the disinfection requirements in 15A 
NCAC 18C .2002(c); or 

(2) it meets the filtration requirements in 15A 
NCAC 18C .2003 and the disinfection re- 
quirements in 15A NCAC 18C .2002(d). 

(c) Each public water system using a surface 
water source or a ground water source under the 
direct influence of surface \\ atcr must be operated 
by a certified operator in accordance 15A NCAC 
18C .1301 through .1.W3. 

Authority G.S. I30A-3I5: PL. 93-523: 40 C.F.R. 
14L 

.2()((2 DISIMKCTION 

(a) A public water system that uses a surface 
water source and docs not provide filtration 
treatment must provide the disinfection treat- 
ment specified in Paragraph (c) of this Rule be- 
ginning December 30, 1991, unless the 
Department determines that filtration is required 
in writing pursuant to the federal Safe Drinking 
Water Act §1412(b)(7)(C)(iii). A public water 
system that uses a ground water source under the 
direct intluence of surface water and does not 
provide fdtration treatment must provide disin- 
fection treatment specified in Paragraph (c) of 
this Rule beginning December 30, 1991, or 18 
months after the Department determines that the 
ground water source is under the influence of 
surface water, whiche\er is later, unless the De- 
partment has determined that filtration is re- 
quired in writing pursuant to the federal Safe 
Dnnkmg Water Act. §1412(b)(7)(C)(iii). If the 
Department has detennined that filtration is re- 
quired the system must comply with any intenm, 
disinfection requirements the Department deems 
necessapi before filtration is installed. 

(b) A public water system that uses a surface 
water source and pro\ides filtration treatment 
must provide the disinfection treatment specified 
in Paragraph (d) of this Rule beginning June 29, 
1993. or beginning when filtration is installed, 
w hich e\er is later. A system that uses a ground 
water source under the direct influence of surface 
water and provides filtration treatment must 
pro\ide disinfection treatment as specified in 
Paragraph (d) of this Rule b) June 29, 1993, or 
beginning when filtration is installed, whiche\er 
is later. Failure to meet any requirement of this 



Rule after the applicable date specified in this 
Paragraph is a treatment technitiue violation. 

(c) liach public water system that does not 
provide filtration treatment must provide disin- 
fection treatment in accordance with procedures 
in 40 C.F.R. §14l.72(a) which is hereby adopted 
by reference in accordance with G.S. 1 SOB- 14(c), 
except that: 

(1) When chlorine is the singular applied 
disinfectant, the residual disinfectant con- 
centration entering the distribution system 
shall not be less than 0.2 mg/ 1 free 
chlorine. When ammonia and chlorine 
are applied disinfectants the residual 
disinfectant concentration entering the 
distribution system shall not be'less than 
2.0 mg/ 1 as combined chlorine; and 

(2) When chlorine is the singular applied 
disinfectant, the residual disinfectant in 
the distribution system shall not be less 
than 0.2 mg, 1 as free chlorine in more 
than 5 percent of the samples each month 
and when ammonia and chlorine are ap- 
plied disinfectants, the residual 
disinfectant shall not be less than 2.0 mg I 
as combined chlorine in more than 5 per- 
cent of the samples each month. 

(d) Fach public water s\stem that pro\ides 
filtration treatment must pro\ide disinfection 
treatment as follows: 

(1) the disinfection treatment must be suffi- 
cient to ensure that the total treatment 
processes of that system achieve at least 
99.9 percent (3-log) inactivation and or 
removal of Giardia lamblia c\sts and at 
least 99.99 percent (4-log) inactivation 
and or remo\al of \iruses, as determined 
b\' the Department. 

(2) the residual disinfectant concentration in 
the water entering the distribution system, 
measured as specified in 15,\ NCAC ISC 
.2004(a| and (c)(2), cannot be less than 
0.2 mg, 1 for more than 4 hours, except 
that the requirements of Paragraph (c)( 1) 
of this Rule shall apply. 

(3) the residual disinfectant ccmcentratuin in 
the distribution system, measured as total 
chlorine, free combined, combined 
chlorine, or chlorine dioxide, as specified 
m 15A NCAC ISC .2004(a) and (c)(3). 
cannot be undetectable in more than fi\e 
percent of the samples each month, for 
any two consecutive months that the sys- 
tem serves water to the public, except that 
the requirements of Paragraph (c)(2) of 
this Rule shall apply. Water in the dis- 
tribution system with a heterotrophic 
bacteria concentration less than or equal 



5:S NORTH CAROLINA REGISTER July 16,1990 



5S2 



PROPOSED RULES 



to 5l)fl ml, measured as heterotrophic 
plate count (11 PC) as specified in 
§14 1.74(a)(3), is deemed to have a detect- 
able disinfectant residual for purposes of 
determining compliance with this require- 
ment, except as required in this Rule, 
■fhu--, the value "V in the following for- 
mula cannot exceed fi\'e percent in one 
month, for any two consecutive months, 
c + d -t- e 

V= .XlOO 

a + b 
where: 

a = number of instances where the residual 
disinfectant concentration is measured; 
b = number of instances where the resi- 
dual disinfectant concentration is not 
measured but heterotrophic bacteria plate 
count (HI'C) is measured; 
c = number of instances where the residual 
disinfectant concentration is measured but 
not detected and no I IPC is measured; 
d = number of instances where no residual 
disinfectant concentration is detected and 
where the II PC is greater than 500 ml; 
and 

e = number of instances w here the residual 
disinfectant concentration is not measured 
and I IPC is greater than 500 ml, 
If the Department determines, based on 
site-specific considerations, that a system 
has no means for ha\ing a sample trans- 
ported and analyzed for 1 1 PC by a certi- 
fied laboratory under the requisite time 
and temperature conditions specified in 
15A NCAC ISC .2004(a) and that the 
system is providing adequate disinfection 
in the distribution sNstcm, the require- 
ments of Paragraph (d)(3) of this Rule do 
not apply. 

Ainlwriiv G.S. J30A-3/5; P.L. 93-523; 40 C.F.R. 
141. 

.200.^ Ill IKVIKJN 

(a) .\ public water sNstcm that uses a suriacc 
water source or a ground water source under the 
direct inlluence of surface water, and docs not 
meet all of the criteria in 15A NCAC ISC .2005 
for axdiding filtration, must pro\ide treatment 
consisting of disinfection as specified in 15.\ 
NCAC ISC .2002 and filtration treatment which 
complies with the requirements of this Rule b\ 
June 29. 1'1'^)3. or within 18 months of the fiilure 
to meet any one of the criteria for avoiding 
filtration, whichever is later. Failure to meet any 
requirement tif this Rule after the date specified 



in this Paragraph is a treatment technique vio- 
latit)n. 

(b) Public water s\stems using conventional 
filtration or direct filtration shall meet the fol- 
lowing criteria: 

(1) The turbidity level of representative sam- 
ples of a system's filtered water must be 
less than or equal to 0.5 NTU in at least 
95 percent of the measurements taken 
each month, measured as specified in 15A 
NCAC ISC .2004, except that if the De- 
partment determines that the system is 
capable of acliieving at least 99.0 percent 
removal and or inactivation of Ciiardia 
lamblia cysts at some turbitlity level 
higher than 0.5 NTl.' in at least 95 percent 
of the measurements taken each month, 
the Department may substitute this higlier 
turbidity limit for that system. However, 
in no case may the Department approve 
a turbiditv limit that allows more than I 
NTU in more than five percent of the 
samples taken each month, measured as 
specified in 15A NCAC ISC .2004. 

(2) Ihe turbiditv level of representative sam- 
ples of a system's filtered water must at 
no time exceed 5 NIL", measured as 
specified in 15A NCAC ISC .2004. 

(c) Public water s\ stems using slow sand 
filtration shall meet the following criteria: 

( 1 ) I he turbidity level of representative sam- 
ples of a system's filtered water must be 
less than or equal to 1 NTU in at least 95 
percent of the measurements taken each 
month, measured as specified in 15.\ 
NCAC ISC .2004 except that if the De- 
partment determines there is no significant 
interi'erence with disinfection at a higher 
turbidity level, the Department may sub- 
stitute this higher turbidity limit for that 
system. 

(2) 1 he turbidity level o{ representative sam- 
ples of a svstem s filtered water must at 
no time exceed 5 NTU. measured as 
specified in 15.\ NC.AC ISC .2004. 

(d) Public water sv stems using diatomaceous 
earth filtration shall meet the following cnteria: 

( 1 ) The turbidity level of representative sam- 
ples of a svstem s filtered water must be 
less than or equal to 1 N IT in at least 95 
percent of the measurements taken each 
month, measured as specified in 15A 
NCAC ISC .2004. 

(2) The turbidity level of representative sam- 
ples of a system's filtered water must at 
no time exceed 5 NTU, measured as 
specified in 15A NCAC ISC .2004. 



5,VJ 



5:S iXORTH CAROLINA REGISTER July 16, 1990 



PROPOSED RULES 



(e) A public water SN'stem may use a filtration 
technology not listed in Paragraphs (b) - (d) of 
this Rule if it demonstrates to the Department, 
using pilot plant studies or other means, that the 
altemati\e filtration technology, with disinfection 
treatment in accordance with I5/\ NCAC 18C 
.20(12, consistently achieves 99.9 percent removal 
and/or inactivation of Giardia lamblia cysts and 
99.99 percent removal and/or inactivation of vi- 
ruses. The requirements of Paragraph (c) of this 
Rule shall apply to an alternati\e filtration tech- 
nology'. 

Authontv G.S. /30A-3/5: P.L. 93-523; 40 C.F.R. 
141. 

.2004 AN AIA nC.AL AM) MOM lOKINC 
KKQl IKKMKMS 

(a) Only the anahtical methods specihed in this 
Paragraph, or otherwise approved by the Envi- 
ronmental Protection Agency, may be used to 
demonstrate compliance with the requirements 
of Rules .20(12, .2003 and .2005 of this .Section. 
.Measurements for pll. temperature, turbidity, 
and residual disinfectant concentrations shall be 
conducted by a party approved by the Depart- 
ment. Measurements for total coliforms, fecal 
coliforms and 1 1 PC must be conducted by a lab- 
oratory certified by the Department to do such 
analysis. L'ntil laboratorv certification cnteria 
are developed for the analysis of II PC and fecal 
colifomis any laboratory certified tor total 
coliform anal>sis by the Department is deemed 
certified for 11 PC and fecal coliform analysis. 
,\nal\tical procedures shall be conducted in ac- 
cordance with requirements in 40 C.l'.R. 
§14 1.74(a) which are hereby adopted by reference 
in accordance with G.S. l5()IM4(c). 

(b) A public water system that uses a surface 
water source and does not prcnide filtration 
treatment must begin monitonng, as specified in 
this Paragraph beginning December 31, 1990 
unless the Department has determined that 
filtration is required in writing, in which case the 
Department may specify alternative monitoring 
retiuirements, as appropriate, until filtration is in 
place. A public water system that uses a ground 
water source under the direct influence of surface 
water and docs not provide filtration treatment 
must begin monitoring specified in this Para- 
graph beginning December 31. l')90 or six 
months after the Department determines that the 
ground water source is under the direct infiuencc 
of surface water, whichever is later. If the De- 
partment has detennined that filtration is re- 
quired in writing pursuant to the federal Safe 
Drinking Water Act s^l412(b)(7)(C)(iii), in which 
case the Department ma\ specify alternative 



monitoring requirements as appropriate until 
filtration is in place. Monitoring shall be con- 
ducted in accordance with requirements set forth 
in 40 C.r.R. 141.74(b)(1) through (6) which is 
hereby adopted by reference in accordance with 
G.S. 150IM4(c). ' 

(c) A public water system that uses a surface 
water source or a ground water source under the 
infiuence of surface water and provides filtration 
treatment must monitor in accordance with this 
Paragraph beginning .lunc 2'5. 1993. or when 
filtration is installed, whichever is later. .Moni- 
toring shall be conducted as follows: 

( 1 ) Turbidity measurements as required b\' 
l.\\ NCAC ISC .2002 must be performed 
on representative samples of the system's 
filtered water even, four hours (or more 
frequentlv ) that the s\stem serves water to 
the public. A public water system may 
substitute continuous turbidity monitor- 
ing for grab sample monitoring if it vali- 
dates the continuous measurement for 
accuracy on a regular basis using a proto- 
col approved by the Department. I'or 
any systems using slow sand filtration or 
filtration treatment other than consen- 
ti(5nal treatment, direct filtration, or 
diatomaceous earth filtratiiin, the Depart- 
ment mas reduce the sampling frecjuency 
to once per day if it determines that less 
trequent monitoring is sufticient to indi- 
cate elTectixe filtration performance. F'or 
sNstems serving 500 or fewer persons, the 
DeparfmenI may reduce the turbidity 
sampling frequencv to once per da\', re- 
gardless of the type of tiltration treatment 
used, if the Department determines that 
less frequent monitoring is sufficient to 
indicate effective filtration performance. 

(2) The residual disinfectant concentration of 
the water entering the distnbution system 
must be monitored continuously, and the 
lowest value must be recorded each da\\ 
except that if there is a failure in the con- 
tinuous monitoring equipment, grab sam- 
pluig even four hours may Ix' conducted 
in lieu of continuous monitoring, but for 
no more than five working days following 
the failure of the equipment. Systems 
ser\ing 3,300 or fewer persons may take 
grab samples in lieu of pro\ iding contin- 
uous monitoring on an ongoing basis at 
the frequency of every four hours that 
water is being treated. 

(3) rhe residual disinfectant concentration 
must be measured at least at the same 
points in the distribution s\"stem and at 
the same time as total colifomis are sam- 



5:H NORTH CAROLINA REGISTER July 16,1990 



5S4 



PROPOSED RULES 



pled, as specified in 15.\ NCAC 18C 
.1533, except that the Department may 
allow a public water system which uses 
both a surface water source or a ground 
water source under direct influence of 
surface water, and a ground water source 
to take disinfectant residual samples at 
point other than the total coliform sam- 
pling pomts if the Department deteimines 
that such points are more representative 
of treated (disinfected) water quality 
uithin the distribution system. 
I [eterotrophic bacteria, measured as 
heterotrophic plate count (UPC) as spec- 
ified in Paragraph (a) of this Rule, may 
be measured in lieu of residual disinfectant 
concentration. 
If the Department determines, based on site- 
specific considerations, that a s\"stem has no 
means for ha\'ing a sample transported and ana- 
lyzed for HPC by a certified laboratory under the 
requisite time and temperature conditions speci- 
fied by Paragraph (a) of this Rule and that the 
system is pro\iding adequate disinfection in the 
distribution system, the requirements of Para- 
graph (c)(3) of this Rule do not apply to that 
s>stcm. 

AiithoritY G.S. /30A-3J5: P.L. 93-523: 40 C.F.R. 
141. 

.2005 CKI IKKIA K)K A\OIDIN(; FILIRAHON 

(a) .-\ public water system is not required to 
provide filtration if it meets all criteria of 40 
C.F-.R. §141. 71(a) and (b) which is hereby 
adopted b_\' reference in accordance with G.S. 
15()B- 14(c). A public water s\stem that uses a 
surface water source must meet all of the re- 
quirements for a\oiding filtration and is subject 
to Paragraph (b) of this Rule, beginnmg Decem- 
ber 30, 1491. unless the Department has deter- 
mined in writing pursuant to the federal Safe 
Drmkmg Water Act §I412(b)(7)(C)(iii), that 
filtration is required. .A public water SNStem that 
uses a ground water source under the direct in- 
lluence of surface water must meet all of the re- 
quirements for a\oiding filtration and is subject 
to F'aragraph (b) of this Rule, beginning IS 
months after the Department determines that it 
is under the direct iniluence of suiface water, or 
I^ecember 30, 1991. whichcwr is later, unless the 
Department has determined, in wnling, that 
filtration is required. \Mien the Department de- 
termines in wnting before December 30, 1991. 
that filtration is required, the system must have 
installed filtration and meet the criteria for filtered 
systems specified in 15A NCAC ISC .2002 and 
.2003 bv June 29. 1993. Within IS months of the 



failure of a system using surface water or a 
ground water source under the direct influence 
of surface water to meet any one of the require- 
ments for avoiding filtration or after June 29, 
1993, whichever is later, the system must ha\e 
installed filtration and meet the criteria for filtered 
svstems specified m 15A NCAC ISC .2002 and 
.2003. 

(b) I'he following are considered treatment 
technique \iolations: 

( 1 ) a public water system that fails to meet 
any one of requirements for a\oiding 
filtration or which the Department has 
determined must provide filtration in 
wnting pursuant to the federal Safe 
Dnnkmg Water .\ct §1412(b)i7)(C)(iii), 
and fails to install filtration b>" the date 
specified in Paragraph (a) of this Rule is 
in violation of a treatment technique re- 
quirement: 

(2) a public water SNStem that meets the re- 
quirements for avoiding filtration \ iolates 
the treatment technique requirement if: 

(.A) the turbiditv le\el. measured as speci- 
fied m 15A NCAC ISC .2004. in a repre- 
sentati\e sample of the source water 
immediately prior to the first or only 
point of disinfection application exceeds 
fi\e NM : or 

(B) the public water system is identified as 
a source of a waterbome disease outbreak. 

Authoritv G.S. I30A-3/3: P.L. 93-523: 40 C.F.R. 
I4L 

.2006 KKPOKIINC AM) KKCOKDkKKIMNG 
KKQl IRKMKMS 

(a) .A public water s\stem that uses a surface 
water source and which does not pro\ide 
filtration treatment must report monthh to the 
Department beginning December 31, 1990. .A 
public water system that uses a giound water 
source under the direct influence of surface water 
and does not provide filtration treatment must 
report monthly to the Department beginning 
December 31, 1990. or six months after the De- 
partment determines that the ground water 
source is under the direct influence of surface 
water, whiche\er is later. If the Department has 
detennined that a public water system must pro- 
side filtration pursuant to the federal Safe 
Dnnking Water .Act §1412 (b)(7)(C)(iii), the De- 
partment may specify altemati\e reporting re- 
quirements, as appropriate, until filtration is in 
place. Source water quality and disinfection in- 
formation must be reported to the Department 
within ten days after the end oi each month the 
system 5en.es water to tlie public. The reports 



.>,V5 



5:8 PsORTH CAROLL\.A REGISTER Jiilv 16, 1990 



PROPOSED RULES 



shall include information required by 40 C.F'.R. filtration is installed, uhiche\er is later. The rc- 

§141. 75(a) which is hereby adopted by reference ports shall include the information required by 

in accordance with G.S. 15()B- 14(c). 40 C.l'.R. §141. 75(b) which is hereby adopted 

(b) A public water system that uses a surface ^^. reference m accordance with G.S. r5(llM4(c). 

water source or a ground water source under the 

direct intluence of surface water and pro\ides , , „ „ ,^n,^,c /. , n^ --.^ ,r, ^ j- n 

ri, ,■ , , , k II w ,Ki , ,1 Auihoritv G.S. 30A-3 5: F.!.. 93-.-)23; 40 CI .R. 
filtration treatment shall report nuinthly to the 

Department beginning June 29, 1993 or when '■ 



5:S ^ORTH C.iROLIN.i REGISTER Jiilv 16,1990 5<S6 



FINAL RULES 



I he List oj Rules Codified is a listing of tides dial were fled to be effeeiivc in the month indicated. 

iXules filed for publication in the SCAC may not be identical to the proposed text published prc- 
' 'usly in the Register. Please contact this office if you have any questions. 



no 



/\ doptcd rules fled by the Departments of Correction. Revenue and Transportation are published 
in this section. Ihese departments are not subject to the provisions ofG.S. I SOB. .irticle 2 requiring 
publication in the .\.C. Register of proposed tides. 

LJ pon request from the adopting agency, the text of rules will he published in this section. 

lunctuation. typographical and technical changes to rules arc incorporated into the IJ.st of Rules 
Coilificil and are noted as * Correction. These changa do not change the effecth'c date of the rule. 



NOR IH CAROLINA ADMINISIR VllVt CODE 

LISI Ol Rl LKS CODIl II D 

,11 I. V 1990 

ACKNCV A( I ION lAKKN 

OKI* ARIMKM Ol- FCONOMIC AND COMMl M lA OKA Kl OI'MKN F 



\c 


3A 


.OiOl 




.Amended 




3C 


.0501 - 
.0503 


.0502 


Repealed 
.\dopted 






.0701 - 


.0703 


Amended 






.0704 - 


.0705 


Repealed 






.1302 




.Amended 






.1401 - 


.1402 


Amended 






.1601 




.Adopted 




I6A 


.0103 - 


.0105 


.Amended 






.0201 - 


.0203 


Adopted 






.0301 




.Adopted 






.0401 




.Adopted 






.0403 




.Adopted 






.0404 - 


.0409 


.Adopted 




16B 


.0001 - 


.0002 


.Amended 




16C 


.0101 
.0201 




.Amended 
.Amended 






.0304 - 


.0305 


.Adopted 






.0401 - 


.0403 


.Amended 






.0501 




.Amended 






.0503 




.Amended 




16D 


.0101 
.0102 
.0104 
.0202 
.0301 




.Amended 
Repealed 
Repealed 
.\mended 
Amended 






.0403 - 


.0405 


.Amended 



.>.V- 5;<V SORTH CAROLINA REGISTER Jidy 16, 1990 



FINAL RULES 





.0406 






.0407 






.0408 






.0503 






.0505 






.0601 - 


.0602 




.0806 - 


.0807 




.0901 






.0002 




16F 


.0001 - 

.0004 

.0005 


.0002 


16II 


.0001 
.0007 




161 


.0701 






.0702 - 


.0703 




.0704 






.0801 - 


.0803 




.0901 - 


.0902 




.0903 - 


.0904 




.1001 






.1003 






.1101 - 


.1102 




.1104- 


.1106 




.1201 - 


.1203 




.1301 - 


.1302 


16.1 


.0001 - 


.0002 


18 


.0203 
.0204 
.0303 
.0308 





Repealed 

Amended 

Repealed 

Repealed 

Repealed 

Repealed 

Amended 

Amended 

Adopted 

Amended 

Repealed 

Amended 

Amended 

Amended 

Repealed 

Amended 

Adopted 

Amended 

Amended 

Repealed 

/Vmcndcd 

Amended 

;\mended 

Amended 

Adopted 

.Adopted 

/Vmendcd 

.Amended 

.Adopted 

.Amended 

Adopted 



()l I K'KS Ol (;()\KRN()R/I in UN AM (;0\ h K\()K 

9 NCAC 2B Fxecutive Order Number 117 

Eff. May 30, 1990 
Fxccutixe Order Number 1 18 
rtr. .lune 12, 1990 
Executive Order Number 1 19 
Eff. June 18, 1990 



DKI'AKIMKMOI III MAN KKSOl KCKS 



NCAC 



10 



NCAC 



3.F 


.2303 
.3403 
.3908 
.3919 
.3925 




14A 


.1301 - 
.l.¥)4 


.1302 




.\M)7 - 


.l.¥)9 




.1311 - 


.1312 




.1314 






.1315 




14L 


.0203 
.0306 




ISM 


.1301 




180 


.0801 




20C 


.0105 





* Correction 

* Correction 

* Correction 

* Correction 

* Correction 
Amended 
Amended 
.Amended 
.Amended 
Repealed 
.Amended 
.Amended 
.Amended 
Repealed 
.Amended 

* Correction 



5.-,V i\ORTLl CAROLINA REGISTER July 16, 1990 



5SS 



FINAL RULES 





.0311 






.0401 






.0402 - 


.0407 




.0408 






.0409 






.0410- 


.0411 




.0412 - 


.0413 


20 D 


.0101 






.0102 - 


.0103 




.0201 






.0202 






.0203 - 


.0204 




.0205 






.0206 






.0301 - 


.0302 




.0303 - 


.0304 




.0305 






.0306 - 


0308 


22G 


.0906 




230 


.0101 






.0402 - 


0403 


24A 


.0605 - 


0606 


2on 


.0008 




35.\ 


.0002 




41N 


.0101 - 
.0201 


0102 




.0202 - 


0203 




.0204 






.0205 






.0207 - 


0208 




,020Q - 


0210 


410 


.0101 
.0201 




42A 


.0308 - 


0310 


42n 


.0902 - 

.0906 

.1102 

.1201 

.1208 

.1707 

.1903 

.2101 


0903 


42C 


. 1 803 - 
.1901 


1804 




.2001 - 


2002 




.2006 - 


2007 




.2008 - 


2009 




.2101 - 


2102 




.2202 - 


2203 




.2205 - 


2207 




.2213 






.2215 






.2.V11 - 


2303 




.2401 - 


2402 




.2404 - 


2405 




.2501 






.2504 






.2505 






.2601 





* Correction 

Amended 
Repealed 
Amended 
Repealed 
Amended 
Repealed 
yVmended 
Repealed 

* Correetion 
Amended 

* Correction 
Repealed 

* Correction 

* Correction 

* Correction 
Repealed 

* Correction 
Adopted 

* Correction 

* Correction 

* Correction 

* Correction 
Repealed 
Amended 
Repealed 
Amended 
Repealed 
Amended 
Repealed 
.Amended 
Amended 
Amended 
/Vmended 
Amended 
Amended 
Amended 
Amended 
Adopted 
Amended 
Amended 
Amended 
Repealed 
Amended 
Amended 
Amended 
Adtipted 
Amended 
Amended 
Amended 
Amended 
.Amended 
Amcniled 
Amended 
.Amended 
Amended 
Repealed 
Amended 
Repealed 



5H9 



5:8 NORTH CAROLISA REGISTER July 16, 1990 



FINAL RULES 



.2602 - .2603 .Amended 

.2703 Amended 

.3001 Amended 

.3003 Amended 

.3101 Amended 

.3201 * Correction 

.3202 Amended 

.3301 - .3302 Amended 

.3304 Amended 

.3402 - .3403 Amended 

.3405 Amended 

.3502 Amended 

42 D .1301 Amended 

.1407 .Amended 

. 1 502 - . 1 503 Amended 

. 1 602 -Amended 

.1605 Amended 

42E .0704 - .0705 Amended 

.OSOl .Wiended 

.0001 - .0902 Amended 

.0005 - .0906 .Amended 

.1001 - .1002 Amended 

.1101 .Amended 

.1104 .'^Vjiicnded 

.1108 Amended 

.1110 Amended 

. 1 207 Amended 

.1402 -.1406 Amended 

42F .0006 - .0007 Amended 

421 1 .0203 Amended 

.0401 Amended 

421 .0002 Amended 

42J .0001 Amended 

.0004 - .0009 Amended 

.0011 .Amended 

42K .0201 .Amended 

.0503 Repealed 

.0602 Amended 

421, .OOOS - .0009 Amended 

.0011 - .0012 Amended 

42N .0001 - .0002 Amended 

420 .0102 - .0103 Amended 

.0104 Repealed 

.0105 Amended 

42P .0701 Repealed 

420 0011 Amended 

.0014 .Amended 

42R .0201 Amended 

42S .0401 Amended 

.0602 - .0603 Amended 

42 r .0001 Amended 

.0003 Amended 

42 V ,(1201 Amended 

.(1203 Amended 

.0206 .Amended 

.0401 Amended 

.0501 - .0503 Amended 

,0601 Amended 

.0701 - .0702 Amended 



5:8 NORTH CAROLINA REGISTER July 16,1990 590 



FINAL RULES 



.0905 Amended 

43L .0101 - .0103 Repealed 

.0201 * Correction 

.0202 - .0205 Repealed 

.0301 - .0303 Repealed 

.0401 Amended 

.(1402 - .0404 Repealed 

44.\ .0001 - .0002 Repealed 

44n .0101 Amended 

.0102 Repealed 

.0103 Amended 

.0201 Amended 

.0203 - .0204 Amended 

.0302 Amended 

.0305 - .0306 Amended 

.11401 - .0402 Amended 

.0501 - .0503 Amended 

.0505 Amended 

.0507 .\mended 

.0509 Amended 

.0514 Amended 

.05 16 -.05 19 Amended 

44C .0101 Repealed 

.0102 Amended 

.0103 Repealed 

.0202 - .0203 Amended 

.0301 - .0303 Amended 

.0401 Amended 

.0406 Amended 

.0702 - .0703 Amended 

.0710 Amended 

.0801 Amended 

.0803 Amended 

.0901 Amended 

.1002 -.1003 Amended 

.1005 Repealed 

.1101 - .1104 Amended 

.1204 * Correction 

.1301 - .1.^02 Amended 

.1303-.1.W4 Repealed 

.1305 Amended 

.1401 - .1407 Amended 

.141 1 Amended 

.1501 - .l.-=;05 Amended 

,1W)1 - .1602 Amended 

44D .0103 - .0104 Amended 

.0106 Amended 

.0108 Amended 

.0203 - .0204 Amended 

.0206 - .0207 Amended 

44H .0001 Amended 

.0003 - .0004 Amended 

.0006 - .0007 Amended 

.0009 - .0010 .Amended 

44F .0101 - .0102 Repealed 

.030 1 Amended 

.0402 - .0403 Amended 

.0502 - .0504 Amended 

.0602 Amended 



591 5:S NORTH CAROLLyA REGISTER July 16.1990 



FINAL RULES 



.0605 Amended 

.0607 - .0609 Amended 

.0701 - .0702 /Vmcnded 

.0703 * Correction 

.0803 Amended 

.0901 - .0902 Amended 

.1004 Amended 

.1007, .^mended 

.1101 - .1104 Amended 

.1201 - .1208 Amended 

.1301 Amended 

. 1 304 Amended 

.1306 -.1307 Amended 

.1401 - .1403 Amended 

. 1 505 Amended 

.150 7 -.1509 .\mended 

. 1 60 1 Amended 

. 1 603 Amended 

. 1 705 Amended 

46A .0001 Amended 

46B .0101 - .0104 Repealed 

.0201 Repealed 

.0203 - .0207 Repealed 

.0301 - .0303 Repealed 

46C .0101 Repealed 

.01 05 -.01 07 Amended 

.0201 - .0202 Repealed 

.0301 - .0308 Repealed 

.0401 - .0405 Repealed 

.050 1 Repealed 

46D .0103 /Vmendcd 

.01 06 -.01 07 Amended 

.020 1 Amended 

461: .01 08 -.01 09 Amended 

.0110 Repealed 

.0112 Amended 

.0304 Repealed 

46F .0107 Amended 

.0109 Repealed 

.0111 Amended 

.0201 - .0202 Repealed 

.0601 - .0604 Repealed 

.0701 - .0709 Repealed 

46G .0101 Amended 

.0102 Repealed 

.01 03 -.01 05 .Amended 

.0107 Repealed 

.0201 Amended 

.0206 -.02 12 Repealed 

461 1 .0101 .Amended 

.01 04 -.01 05 Amended 

.01 07 -.01 08 Amended 

.0201 .Amended 

.0301 - .0304 .Amended 

49 B .0312 .Amended 

49C .0103 * Correction 

.0105 -.0106 * Correction 

.0301 - .0302 .Amended 

.0401 * Correction 



5:8 NORTH CAROLINA REGISTER July 16, 1990 592 



FINAL RULES 



.0501 
49H .0003 

\^YV \R TMFNT OF INSl RANGE 



11 



NCAC 



NCAC 



6A 


.0201 






.0210- 


.0211 




.0213- 


.0214 




.0217 






.0220 






.0222 






.0224 - 


.0235 




.0237 






.0302 - 


.0303 




.0504 






.0507 






.0603 - 


.0604 




.OSOl - 


.081 1 


10 


.1102 




12 


.0801 - 


.0814 




.0815- 


.0833 


.11 STICF 


.0202 




7D 






.0702 






.0802 




9A 


.0201 - 


.0206 


9B 


.0101 




9C 


.0306 - 

.0309 

.0310 


.0307 


lOB 


.0204 
.0301 
.0406 
.0409 




1 ABOR 







* Correction 
Amended 



* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 
Temp. .Adopted 
Expires 12-19-90 
Amended 
Temp. Repealed 
I-xpires 12-10-90 
Temp. .Adopted 
Expires 12-10-90 



Amended 

Amended 

Amended 

.Amended 

Amended 

.Amended 

^Vmended 

Adopted 

Amended 

Amended 

.Amended 

Adopted 



13 NCAC 7C .0101 Amended 

nUnRlMFNT OF FNMRONMFNT. IIFAFTII, AND NATIRAF RFSOt RTFS 



,5A NCAC 



2B 


.0303 
.0310 




2F 


.0101 






.0103 - 


.0104 


7J 


.0204 






.0210 - 


.0211 




.0301 - 


.0302 




.0602 




7M 


.0306 




lOB 


.0202 - 
.0209 


.0203 


IOC 


.0205 
.0301 





Amended 

Amended 

Amended 

Amended 

Amended 

Adopted 

Amended 

Amended 

Adopted 

/Vmended 

.Amended 

Amended 

/Vmended 



59i 



5:8 NORTH CAROLINA REGISTER Jiilv 16, 1990 



FINAL RULES 



.0305 

.0404 

.0407 
lOD .0002 - .0004 
101 1 .0.¥)1 
101 .0005 
18A .1%! 



Amended 
Amended 
Amended 
Amended 

* Correction 

* Correction 
Temp. Amended 
Expires 12-27-90 



DKI'ARIMKN f f)l IM 151 l( KOI ( A HON 



NCAC 



DF.P AR I \1KM Ol- 



17 



NCAC 



6C 


.0310 




6n 


.0202 




RFAKM 


K 




4/\ 


.000] - 


.0007 


4n 


.0103 
.0110 






.0.W8 - 


.0309 




.0313 






.0501 






.0503 






.0505 






.1101 






.1304 






.1305 






. 1 307 - 


.1309 




. 1 502 






.1601 






.1706 






. 1 S 1 






.1901 






.2105 






.2113 






.2114 






.2115 






.2116- 


.2117 




.2201 






.2206 






.2701 - 


.2703 




.3005 






.3408 






..^412- 


.3413 




.3903 






.4402 






.4.S01 - 


.4505 




.4506 






.4507 






.4508 - 


.4513 




.4.S14 - 


.4521 


41- 


.0105 
.020'* 




7B 


..UOl 
.430 1 






.4601 - 


.4602 




.4604 






.4606 






.4609 





Amended 
Amended 



* Correction 
Repealed 
Repealed 
Amended 

* Correction 
Repealed 
Repealed 
Repealed 
Repealed 
Repealed 
.Amended 
Repealed 
Repealed 
.Amended 
.Amended 
Amended 
Repealed 
Repealed 

* Coirection 
•Atiieiuled 
Repealed 
-Amended 
Repealed 
Repealed 
Repealed 
Repealed 
,\men(.lcd 
/Xmended 
Repealed 
Ameiuled 
Amended 

* Correction 
Amended 

* Correction 
\mended 
^epealeil 
\mended 
\mended 
\mcndcd 
\meilded 

\ mended 
\mended 
Amended 



.v<V NORTH CAROLINA REGISTER July 16,1990 



594 



FINAL RULES 





.4610 




Repealed 




.4612 - 


.4615 


Amended 




.4616 




■ Repealed 




.4617 




Amended 




.5401 




Amended 




..543<^ 




Amended 




.5447 - 


.5448 


Adopted 


SKCKFT AK'S OF S IM F 








18 NCAC 4 


.0101 - 


.0102 


Temp. /Vmended 
Expires 12-27-90 




.0201 - 


.0204 


* Correetion 




.0205 - 


.0206 


Temp. Amended 
Expires 12-27-90 




.0,W1 




Temp. Repealed 
Expires 12-27-90 ' 




.0302 - 


.0303 


Temp. .Amended 
Expires 12-27-90 




.0304 




* Correetion 




.0.W5 - 


.0308 


Temp. Amended 
Expires 12-27-90 




.0309 




♦ Correetion 




.0310 




Temp. Repealed 
Expires 12-27-90 




.0311 - 


.0314 


Temp. Amended 
Expires 12-27-90 




.0315 




Temp. Repealed 
Expires 12-27-90 




.0316 




Temp. .Adopted 
Expires 12-27-90 




.0401 - 


.0402 


Temp. Amended 
Expires 12-27-90 




.0501 - 


.0504 


Temp. Amended 
Expires 12-27-QO 


6 


.1210 




Temp. Adopted 

Expires 12-08-90 


JU)\Rn OF rOSMFIIC AR 


FXAMINFRS 




21 NCAC 14r 


.0004 




Amended 


14K 


.0007 




Adopted 


HO \Kn Ol I'FI MI{IN(; \M) IIF Al INC (ON FK \( FORS 




21 NCAC 50 


.030^ 




* Correetion 



RFAl ESTAFF COMMIS.SION 

21 NCAC 58C .0202 Adopted 

.0203 - .0205 Amended 

.0214 Amended 

.02 17 -.02 18 Amended 

Ol I l( F OF STAIF PFRSONNFF 

25 NCAC \D .0303 Amended 

.0308 .-^Vmended 

.0406 Amended 



595 5:S NORTH CAR()LL\'A REGISTER July 16,1990 



FINAL RULES 



.0605 y\mcndcd 

.0609 Amended 

.0706 - .0708 /Vmcnded 



5:S NORTH CAROLINA REGISTER Julv 16, 1990 596 



A RRC OBJECTIONS 



1 he Adminisiralh'c Rules Review Commission (ARRC) objected to the following, rules in accord- 
ance with C/.S. J43B-30.2fc ). State agencies are required to respond to ARRC as provided in G.S. 

l43B-3i).2id>. 



!( ONOMIC AM) ( OMMLMTY DE\ ELOPMKNT 

Sa\'ings Institutions Division 

4 XCAC I6A .0302 - Response of Administrator to Petition 
4 SCAC I6A .0402 - hformal Settlement 

I.NMRONMKM, UKAl IH. AM) NAll RAL RKSOl RCKS 

Fn\'ironmcntal Health 

l5.-\ SCiC JS.4 .IS 14 - Disposal of Garbage and Trash: Premises 
15.4 .\CAC ISC .I52S - Point-of-Entiy and Other Treatment Devices 

rn\ ironincntal Management 

ISA \C.\C 2T .0102 - General Criteria 

ISA \C.iC 2T .mOS - Etfecti\-e Contingent Upon Ecdcral Eiinds .Allocated 

Health: F pii-lemiology 

ISA SCAC I'^B .0202 - Granting. Permits 

ISA SCAC IQD .040^ - .Medical Eligibility 

ISA SCAC l<^D .040S - .Medical Eligibility Licensed Si.irsing HomeScnices 

1 ahoratoiy Senices 

ISA SCAC 20A .0002- Definitions 

\\ iklhte Resources Commission 

ISA SCAC IOC .OSOI - Scope and Purpose 

MIMAN RKSOIRC KS 

Medical Assistance 

/() \C.[C SOB .0311 - Reseive 

\'outh Sei^ices 

10 sac 44 E .1305 - Corporal Punishment and Child Abuse 

IK I.NSIM, HOARDS AM) COMMISSIONS 

Certification Board for Social Work 

21 SCAC 63 .0104 - Organization of the Board 
21 SCAC 63 .0301 - Written Examinations 
21 SCAC 63 .0403 - Renewal Eees 



ARRC Objection 5 
ARRC Objection 5 



n 90 

17 90 



ARRC Objection 6 
ARRC Objection 6 



ARRC Objection S 
ARRC Objection S: 



ARRC Objection 6 
ARRC Objection 6 
ARRC Objection 6 



21 90 
21 90 



n 90 
17.90 



21 90 
21 90 
21 90 



ARRC Objections 21 90 



ARRC Objection 6 21 90 



ARRC Objections 21 90 



ARRC Objection 5 I" 90 



ARRC Objection 5 C 90 
ARRC Objection 5 I" 90 
ARRC Objection S r 90 



59' 



5:S NORTH CAROLINA REGISTER .Inly 16,1990 



ARRC OBJECTIONS 



PI BLIC KDLCA HON 

I'lcmcntan," and ScconJan I-ducation 
16 NCAC 6D .0/05 - Use of School Day 
SFXRKTARV OF STATE 



ARRC Objection 6! 2 1 190 



Coqiorations Di\'ision 



IS \CAC 4 
IS SCAC 4 
IS XCAC4 
IS \CAC4 



XCAC 4 
.\CAC4 
\CAC4 
XCAC 4 
XCAC 4 
XCAC 4 
XCAC 4 
XCAC 4 
XCAC 4 
IS XCAC 4 
IS XCAC 4 
IS XCAC 4 
IS XCAC 4 
IS XCAC 4 
IS XCAC 4 
IS XCAC 4 
IS XCAC 4 



IS 
IS 
IS 
IS 
IS 
IS 
IS 
IS 
IS 



.0101 
.0102 
.0205 
.0206 
.0302 
.0303 
.0305 
.0306 
.0307 
.030S 
.0311 
.0312 
.0313 
.0314 
.0316 
.0401 
.0402 
.0501 
.0502 
.0503 
.0504 



Location and Hours ARRC Objection 

Administration and functions .iRRC Objection 

Cherpayment .IRRC Objection 

Documents .\'ot .Specifically Provided For .IRRC Objection 

Execution ARRC Objection 

Rejection ' ARRC Objection 

Corrective Filin'^s-Xonprofti Corp' Limited Partnerships .IRRC Objection 

.Articles of Incorporation - Xonprojit Corporations .-iRRC Objection 

.■Ipplication For Resen-ation of Corporate Xame .IRRC Objection 

Registered Ofjice and Registered Agent .iRRC Objection 

Art of .Merger, Share Exch G.S. 55-1 1 -0'^ 55A-42.I ARRC Objection 

■ ippl For Cert of .iuthority Foreign Prof Cvrporation .iRRC Objection 

Filing Merger Imolving Foreign Corporation .IRRC Objection 

Filing Fvidence of Dissolution Foreign Xonprojit Corp .iRRC Objection 

Form for .1 nnual Report A RRC ( V.yection 

Documents ARRC Objection 

Cert of Facfi Certificate of Fxit .iuthoriiation .iRRC Objection 

General ARRC Objection 

Words Prohibited in .Addition to Statutoiy Prohibitions .IRRC Objection 

Deceptively Similar and Distinguishable .\ames .IRRC Objection 

Filing Fictitious .Isuuned .\ame Foreign Corporation .IRRC Objection 



6I2II90 
6!2I!90 
6 21:90 
6 21 90 
■6 21 90 
6 2i:90 
6' 21 '90 
6 21 
6 21 
6 21 



90 
90 
90 



6 2F90 



6 21 
6 
6 
6 



90 
21:90 
21 90 



21 
21 



90 
90 



21 90 
90 



6 
6 

6 21 
6 21.90 
6'2i:90 
6 21 90 



Securities Di\ision 



IS XC.IC 6 .1210 - Securities Fxchgs Auto Quotation Sys Approve Admin .iRRC Objection 6 21 90 



5:,S iXORTH C.4ROLIi\.4 REGISTER July 16.1990 



59S 



RULES INVALIDATED BY JUDICIAL DECISION 



I his Section of the Register lists the recent decisions issued by the Sorth Carolina Supreme Court. 
Court of Appeals. Superior Court (when cn-ailahic i. and the Office of Administrative Hearings which 
invalidate a rule in the Sorth Carolina .-idministratr^-c Code. 



ID NC.IC JR .Il3r(g) - WiniDRA UAL Of A CERTIFICA IE 

Robert Roosevelt Rcilly. Jr.. .Administrative law .Fudge with the OtTice of Administrative Hearings, 
declared Rule 10 NCAC 3R .()317(g) \oid as applied in Dawn Health Care, a Sorth Carolina General 
Partnership. Petitioner v. Department of Human Resources. Certificate of Seed Section, Respondent (90 
DIIR 0296). 



599 



5:S NORTH CAROLINA REGISTER July 16,1990 



IS'ORTH CAROLINA ADMINISTRATH E CODE CLASSIFICATION SYSTEM 



The North Carolina Administrative Code ( NCAC) has four major subdivisions of rules. Two 
of these, titles and chapters, are mandatory. The major subdivision of the NCAC is the title. 
T.ach major department in the North Carolina executive branch of government has been as- 
signed a title number. Titles are further broken down into chapters which shall he numerical 
in order. The other two. subchapters and sections are optional subdivisions to be used by 
agencies when appropriate. 

TITLR/MA.IOR DFV ISIONS OF THE NORTH CAROLINA ADMIN ISTRAXrVE CODE 



riTLE 


DEPARTMEM 


LICENSING BOARDS 


CHAPTER 


1 


Administiatidii 


Architecture 


-> 


-> 


AgiicultuR- 


Auctioneers 


■ 4 


3 


Auditor 


Barber Fxaminers 


6 


4 


Fconoinic and Community 


Crertified Public Accountant Examiners 


S 




Development 


Chiropractic Examiners 


10 


5 


Correction 


General Contractors 


12 


6 


Council of State 


Cosmetic Art Examiners 


14 


7 


Cultural Resources 


Dental Examiners 


16 


S 


Flections 


l-lectrical Contractors 


IS 


9 


Governor 


Foresters 


20 


10 


Human Resources 


Geologists 


21 


11 


Insurance 


I learing Aid Dealers and Fitters 


TT 


12 


Justice 


I andscape Architects 


26 


13 


1 ahor 


I andscape Contractors 


28 


14\ 


Crime Control and Puhlic Safety 


Marital & Family Therapy 


31 


1 5A 


nn\iroimient. Health, and Natural 


Medical Examiners 


32 




Resources 


Midwifeiy Joint Committee 


33 


16 


Public Fducation 


MortuaiT Science 


34 


17 


Resenue 


Nursing 


36 


IS 


Secretary of State 


Nursing Home Administrators 


37 


19A 


Transportation 


Occupational Therapists 


38 


20 


Treasurer 


Opticians 


40 


*2I 


f\~cupational I icensing Boards 


Optometry 


42 


■)") 


\dministrati\e Procedures 


Osteopathic Examination and 


44 


23 


("ommunity Colleges 


Registration 




24 


Independent Agencies 


Pharmacy 


46 


25 


State Personnel 


Physical Therap\ Examiners 


48 


26 


/\dministrati\e 1 learings 


Plumbing and Heating Contractors 


50 






Podiatn," Examiners 


52 






Practicing Counselors 


53 






Practicing Psychologists 


54 






Professional Engineers and I and Suneyors 56 






Real Estate Commission 


58 






Refrigeration Examiners 


60 






Sanitarian Examiners 


62 






Social Work 


63 






Speech and I anguage Pathologists and 


64 






Audiologists 








Veterinar\' Medical Board 


66 



Note: I itle 21 contains the chapters of tlie various occupational licensing boards. 



5:,S NORTH CAROLINA REGISTER .luly 16,1990 



600 



CUMULATIVE INDEX 



CUMILATIVE INDEX 

t April 1990 - March 1991) 



1990 - 1991 



Pases 



Issue 



1 - 


151 


1 - April 


152 - 


235 


2 - Apnl 


236 - 


285 


3 - May 


286 - 


312 


4 - May 


313 - 


407 


5 - June 


4(IS - 


473 


6 - June 


474 - 


513 


7 - July 


514 - 


603 


8 - July 



AO - Administrative Order 

AG - Attorney General s Opinions 

C - Correction 

IR - I inal Rule 

CjS - Cjeneral Statute 

JO - Judicial Orders or Decision 

M - Miscellaneous 

NP - Notice ot~ Petitions 

I'R - Proposed Rule 

SO - Statements of Organization 

TR - Temporars Rule 



ADMIMSI RAMON 

State Propert\ and Construction, 41 1 PR 

AGRK II.IIRK 

F'lant Conser\ation Board. 1 PR 
Structural Pest Control Committee. 7 PR 

CRIMK CONIROI. AND PLBI.IC .SAFKTV 

State Ilidiway Patrol. 53 PR 

Butner PubliJ Safety Division. 41^) PR 

KCONOMIC AND COMMIAITV DEVKLOPMFAT 

Banking Commission. 16 j'R 
Commumtv Assistance. 25 PR, 317 PR 
Credit Inion. 317 PR 
Milk Commission, 24 PR 

ENMRONMKNT, HEALTH, AND NATl RAL RESOl RCES 

Coastal Manaszemcnt. 136 PR. 292 PR 

Environmental Management. 54 PR. 193 PR, 420 PR, 542 PR 

Health Scr\ices, 190 PR, 565 PR 

Manne Fishenes. 63 PR, 484 PR 

\\' IP Operators Certification Conimission. 551 PR 



601 



5:S NORTH CAROLINA REGISTER July 16, 1990 



CUMULATIVE INDEX 



Wildlife Resources and Water Safety, 137 PR, 206 PR, 293 PR, 349 PR, 438 PR, 563 PR 

FINAL DECISION LETTERS 

Voting Rights y\ct, 241, 286, 316 

FLVAL RULES 

List of Rules Codified, 143 FR, 226 FR, 302 FR, 463 FR, 587 FR 

C;0\ ERNOR/LT. C.O\ ERNOR 

Fxccutive Orders, 236, 313, 408, 474, 514 

lUMAN RESOl RCES 

[■acilitv Services, 516 PR 

Health Services, 152 PR, 245 PR 

Medical Assistance, 191 PR 

Mental Health, Developmental Disabilities and Substance Abuse Services, 29 PR. 318 PR, 475 PR 

Services for the Blind, 412 PR 

Social Services, 247 PR 

Water IVeatment Facilit\' Operators Board of Certification, 27 PR 

Youth Services, 261 PR' 

rsSLRANCE 

/\ctuarial Services Division. 480 PR 

Agent Services Division. 321 PR. 520 PR 

Financial Evaluation F^ivision. 342 PR. 525 PR 

Fire and Casualty Division. 335 PR, 478 PR 

I ifc: Accident and Health. 264 PR, 287 PR, 529 PR 

.jrsncE 

Attorney General. Office of the, 192 PR, 273 PR 

LICENSIN(. BOAROS 

Cosmetic .'\rt Examiners. Board of 355 PR 

J lectrical Contractors. Board of Examiners of 356 PR 

Medical Examiners. Board of 207 PR 

Nursing. Board of 300 PR, 496 PR 

Phvsical Iherapy Examiners, Board of 443 PR 

PLBLIC EDLCATION 

Elementaiy and Secondarx . 141 PR, 275 PR, 351 PR 

REVENLE 

Individual Income Tax, 359 FR 

I iccnsc and Excise Tax Division, 445 FR 

Sales and Use Tax, 213 FR, 453 FR 

SE( REIARV OF STATE 

Corporations Division. 489 PR 
Securities Division, 293 PR, 495 PR 

STA IE PERS()NN.EL 

State Personnel Commission, 277 PR, 500 PR 

SIAIE IREASl RER 

Department Rules, 352 PR 

I ocal Government Commission. 352 PR, 442 PR 

Solid Waste Management Capital Projects Financing Agency, 354 PR 



5:8 l^ORTH CAROLINA REGISTER July 16,1990 602 



CUMULATIVE INDEX 



TRANSPORIATION 

Motor Vehicles, Division of. 222 FR 



60? 5:S S'ORTH CAROLINA REGISTER .Inly 16, 1990 



NORTH CAROLINA ADMINISTRATIVE CODE 

The full puhlication consists of 52 volumes, totaling in excess of / 5. 000 pages, ft is supplemented monthly 
with replacement pages. A one year subscription to the full publication including supplements can be 
purchased for seven hundred and fifty dollars i $^50.00). Indr\idual volumes may also be purchased with 
supplement sciyice. Renewal subscriptions for supplements to the initial publication arc awiilahle at one- 
half the new subscription price. 

PRICE LIST FOR THE SUBSCRIPTION YEAR 



\'()liinR' 


litlc 


Chaptor 


Suhjoft 


Nov 
Subscription* 


Quantity 


Fotal 

IVicc 


1 - 52 


lull Code 

1 
"> 

-> 

3 

4 

4 

5 

5 

6 

7 

8 

9 . 

10 

1(1 

10 

10 
10 
10 

10 
10 
10 
10 
10 
10 
10 
10 
10 
10 

11 


1 - 37 
1 - 24 
25 - 52 
1 -4 
1 - 2 
3 - 20 
1 - 2 
3 - 4 
1 - 4 
1-11 
1 - 9 
1 - 4 
1 - 2 
3A - 3K 
3L - 3R 

3S - if 

4- 6 

7 

S - 9 

10 

11-14 

15 - 17 

18 

19 - 30 

31 - 33 

34 - 41 

42 

43 - 51 

1 - 15 


All titles 

Administration 

AgncnlturL" 

AszricultLirc 

Auditor 

ECD (includes ABC) 

ECD 

Correction 

Correction 

Council of State 

Cultural Resources 

Llections 

GoNcmor 

1 luman Resources 

1 luman Resources 

Human Resources 

(includes CON) 
Human Resources 
Human Resources 
Human Resources 

(includes Breathali/.er) 
Human Resources 
Human Resources 
Human Resources 
Human Resources 
Human Resources 
1 luman Resources 
Human Resources 
Human Resources 
Human Resources 
Human Resources 
Insurance 


$750.00 
90.00 
75.00 
75.00 
10.00 
45.00 
90.00 
60.00 
30.00 

60.00 
10.00 
45.00 
30.00 
90.00 

45.00 
30.00 
30.00 

30.00 
60.00 
90.00 
60.00 
45.00 
75.00 
90.00 
30.00 
60.00 
45.00 
90.00 
90.00 






1 






-> 






3 






4 






5 






6 






7 






8 






9 






1(1 






11 






12 






13 






14 






13 






Ih 






17 






IX 






1') 






20 






21 






-]-) 






23 






24 






25 






26 






27 






28 










CoiUinucd 



Total 
^ oltinic litlc Chapter Siibjoct Subscription* Quantity Price 



29 


12 


30 


13 


31 


13 


32 


13 


33 


14A 


34 


1 5A 


35 


15A 


36 


15A 


37 


15A 


38 


1 5A 


39 


1 5.A 


40 


16 


41 


17 


42 


17 


43 


18 


44 


19A 


45 


20 


46 


21 


47 


21 


48 


21 




22 


49 


23 


50 


24. 


51 


25 


52 


26 







New 


Chapter 


Subjoct 


Subscription 


I - 12 


Justice 


90.00 


1 - 6 


labor 


30.00 


7 


OSIIA 


45.00 


8- 15 


Labor 


45.00 


1 - 11 


Crime Control and 






Public Satetv 


45.00 


1 - 2 


i;ilNR (includes liMC) 


90.00 


3- 6 


1 HNR 


45.00 


7 


Coastal Management 


45.00 


8- 9 


LIINR 


30.00 


10 


Wildlife 


45.00 


11-22 


LIINR 


60.00 


1 - 6 


Education 


30.00 


1 - 6 


Revenue 


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7- 11 


Revenue 


60.00 


1 - 7 


Secretan' of State 


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1 - 6 


Transportation 


90.00 


1 - 9 


Treasurer 


45.00 


1 - 16 


Licensing Boards 


75.00 


17- 37 


Licensing Boards 


75.00 


38 - 70 


Licensing Boards 




1 - 2 


Administrative Procedures 


75.00 


1 - 2 


Communitv Colleges 


10.00 


1 - 2 


Independent Agencies 


10.00 


1 


State Personnel 


60.00 


1 - 4 


Adniimstralne Ileanngs 


10.00 



Total 



(Make checks payable to Office of Administiathe Ileanngs.) 

I his price includes the title in its current form plus supplementation for the subscription year. 
Suhscription years are Junuaij I through December M . 



\LUL K): 



OLI ICi: OF AD.MINISTRATIVE HEARINGS 

POS'I OFI I(T- DRA\VI:R 11666 

R.MLKjII. NORIH CAROLINA 27604 



t709Z,Z BUIIOJB3 ipjON 'qSpiB^ 

99911 jaMBJQ O d 

sSuiJBdH 3AIIBJISIUIUIPV JO asijjo 



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